Why G-III Apparel Shares Popped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of G-III Apparel Group were looking fashionable today, climbing as much as 15% after a strong second-quarter earnings report.

So what: The parent of a number of clothing brands, including Andrew Marc and Jessica Howard, said earnings per share came in at $0.17, well ahead of estimates at $0.10, while revenue soared 20.9% to $304.2 million, topping expectations of $287.9 million. CEO Morris Goldfarb said it was an excellent quarter for the company, citing "broad-based strength across many categories and brands." G-III also lifted its guidance for the year, saying it now expects EPS of $3.30-$3.40, $0.10 above its previous range, and sees full-year revenue of $1.61 billion. Analysts had expected per-share earnings of $3.30 on revenue of $1.57 billion.

Now what: You can't ask for much more from an earnings report than beating top-and-bottom-line estimates and raising guidance. Goldfarb also noted that the company's most recent acquisition, Vilebrequin, a swim line, is performing well, which seems to bode well for future acquisitions and growth. With its average valuation and a strong growth rate, I wouldn't be surprised to see G-III shares move higher from here.

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The article Why G-III Apparel Shares Popped originally appeared on Fool.com.

Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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