GIII - G-III Apparel stock shines on earnings beat

G-III Apparel (GIII) reports net sales dropped 26.7% in Q3.Gross margin rate improved 60 bps to 36% vs. consensus of 33.6%.SG&A expense rate -40 bps to 21.5 vs. consensus of 25%.Operating margin rate expanded 60 bps to 13.3% vs. consensus of 7.8%.Inventory down 29% to $461.77M.As announced before, the company is restructuring its retail operations segment, which includes permanently closing 110 Wilsons Leather and 89 G.H. Bass stores. The company is on track to close all stores by January 31, 2021.The company expects net sales to decline approximately 30% in Q4 vs. consensus decline of 26.5%.Morris Goldfarb, Chairman and CEO said, “We ended the quarter with a strong financial position, with approximately $800 million of cash and availability under our revolving credit facility. We are well positioned to complete the year in line with our expectations.”Shares up 8.4% premarket.Previously: G-III Apparel EPS beats by $0.28, beats on revenue (Dec. 8)

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G-III Apparel stock shines on earnings beat