G-III Apparel to close RI plant

G-III Apparel to close RI plant

NEW YORK: G-III Apparel Group Ltd, which makes clothes and shoes under the Cole Haan and Jones New York labels, plans to close its factory in Indonesia because of rising costs and political and economic instability.

G-III will have a fiscal fourth-quarter expense of $2.2 million to $3.4 million to shut down the Indonesian plant, the company said in a statement.

The New York-based company also lowered its forecast for the fiscal year ending Jan. 31. The company cut its estimates to 60 cents to 65 cents a share, excluding the expense from closing the facility, from a September estimate of 95 cents to $1.

The company attributed the revised guidance a "significant" increases in operating losses in Indonesia as well as higher than planned advertising and shipping costs.

G-III's shares fell 4 cents to $7.17 as of 4 p.m. in Nasdaq Stock Market trading. They've risen 35 percent in the past year. -- Bloomberg