Shares of G-III Apparel Group Ltd. plunged 9.9% toward a four-year low in premarket trade Monday, after the branded apparel and accessories maker reported a wider-than-expected fiscal fourth-quarter loss and provided a downbeat outlook. For the quarter to Jan. 31, G-III swung to a net loss of $20.1 million, or 42 cents a share, from a profit of $8.0 million, or 17 cents a share, from the same period a year ago. Excluding non-recurring items, the adjusted per-share loss was 16 cents, compared with the FactSet loss consensus of 10 cents. Revenue rose to $603.3 million from $527.4 million, but missed the FactSet consensus of $622.8 million. For the current fiscal year, G-III's EPS outlook of 80 cents to 90 cents was below the FactSet consensus of $1.34, and the sale guidance of "approximately" $2.73 billion was below expectations of $2.89 billion. " Our non-outerwear wholesale business performed well in the face of significant headwinds as the traditional retail environment has become increasingly disrupted as a result of evolving consumer buying behavior and continued penetration of e-commerce," said Chief Executive Morris Goldfarb. The stock has tumbled 22% year to date through Friday, while the S&P 500 has gained 4.7%.
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