Shares of G-III Apparel Group — the maker of brands including Calvin Klein and Tommy Hilfiger — dropped by as much as 18% in trading on Tuesday after worse-than-expected earnings results.
The company reported fourth-quarter adjusted earnings per share of $0.17, short of the forecast for $0.41 according to Bloomberg. Sales of $527 million missed the estimate for $566 million.
The earnings report release captures some of the challenges that slammed several apparel companies last quarter.
CEO Morris Goldfarb wrote (emphasis added), “Fiscal 2016 was a very strong year for us, although we were disappointed by our wholesale and retail outerwear business, which was heavily impacted by the warmest winter ever recorded.”
Many apparel companies attributed poor holiday sales to the the warmer-than-usual season, which put consumers off buying seasonal clothes.
The company further said that net sales rose 3%, but this could have been higher if promotion costs were less.
Its guidance for first-quarter sales of $527.4 million missed the estimate of $566.3 million.
Goldfarb said G-III’s underwear, dress and team sports businesses did well.
The company also licenses the Ivanka Trump and Jessica Simpson brands, among others.
Nike is slated to report earnings after the market close on Tuesday.
Here’s a chart showing the drop in shares: