Third quarter income from operations totaled $122.9 million, or 16.4 per cent of net sales, compared to $123.6 million, or 16.6 per cent of net sales, for the same period in 2016. The effective income tax rate was 26.4 per cent in the third quarter of 2017, reflecting a favourable shift in the geographic mix of taxable income compared to the 29.7 per cent effective income tax rate for the same period in 2016.
Through the first nine months of 2017, net sales increased $30.5 million, or 2 per cent, to a record $1,690.1 million, compared to $1,659.6 million in the comparable 2016 period. Year-to-date 2017 net income increased 5 per cent, to $112.2 million, or $1.59 per diluted share, compared to net income of $107.2 million, or $1.52 per diluted share, in the comparable 2016 period.
"We're pleased to report better than expected third quarter results, including continued strong sales growth in our European wholesale and US direct-to-consumer businesses, as well as growth in each of our international regions. While our US business adapts to ongoing structural changes, our improved profitability outside the US illustrates the strength of our global business model," said president and chief executive officer Tim Boyle.
For fiscal 2017, the company expects net income between approximately $183 and $190 million, or $2.60 to $2.70 per diluted share. It projects net sales growth of around 3 per cent compared with 2016 net sales of $2.38 billion, including less than 1 percentage point positive effect from changes in currency exchange rates. The company expects 2017 operating income between approximately $243 and $252 million, representing anticipated 2017 operating margin of up to approximately 10.3 per cent.
"We are also pleased to reiterate our full year 2017 financial outlook, which now incorporates the anticipated costs of Project Connect. In addition, based upon advance orders for Spring 2018 we are optimistic that we will continue to generate global growth, including a return to growth in our US wholesale business in the first half of 2018," said Boyle.
"Our powerful balance sheet, with $430 million in cash and no long-term debt, provides the flexibility to adapt our business as our major markets evolve. It is from this position of strength and confidence that we are moving steadily forward on Project Connect, identifying strategic organisational and operational initiatives to accelerate execution of our strategic plan and to increase demand creation to drive further profitable growth in 2018 and beyond," explained Boyle. (RR)
Fibre2Fashion News Desk – India
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