G-III Apparel Group, Ltd. Announces Third Quarter Fiscal 2004 Results
NEW YORK, Dec 4, 2003 -- G-III Apparel Group, Ltd. (Nasdaq: GIII) today announced results for the third quarter of fiscal 2004.
For the three-month period ended October 31, 2003, G-III reported net sales of $125.5 million and net income of $11.4 million, or $1.50 per diluted share, compared to net sales of $102.3 million and net income of $8.5 million, or $1.16 per diluted share, in the comparable period last year.
For the nine-month period ended October 31, 2003, G-III reported net sales of $189.6 million and net income of $11.5 million, or $1.54 per diluted share, compared to net sales of $155.0 million and net income of $4.9 million, or $0.67 per diluted share, in the comparable period last year.
Morris Goldfarb, G-III's Chief Executive Officer, said, "We are pleased with our solid performance in the third quarter. Our sales and gross margin gains stemmed primarily from continued strong shipments in our sports apparel business. Over this past year we continued to make progress broadening our distribution channels and diversifying our product mix."
The company today reiterated its guidance for the fiscal year ending January 31, 2004. For the fiscal year, the Company continues to forecast net sales of approximately $220 million and diluted net income per share between $1.10 and $1.15.
About G-III Apparel Group, Ltd.
G-III Apparel Group, Ltd. is a leading manufacturer and distributor of leather and non-leather outerwear and apparel under our own labels, licensed labels and private labels. Company-owned labels include, among others, Black Rivet, Colebrook, Siena Studio and G-III. The Company has fashion licenses with Kenneth Cole, Nine West, Timberland, Cole Haan, Jones Apparel, Sean John, Bill Blass and James Dean and sports licensing agreements with the National Football League, National Hockey League, National Basketball Association, Major League Baseball and more than 60 universities nationwide.
Statements concerning the Company's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors include, but are not limited to, reliance on foreign manufacturers, the nature of the apparel industry, including changing customer demand and tastes, reliance on licensed product, seasonality, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
(NASDAQ:GIII - News)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
10/31/03 10/31/02 10/31/03 10/31/02
-------- --------- --------- ---------
Net sales $125,547 $102,284 $189,558 $154,997
Cost of sales 88,208 74,324 132,184 115,321
-------- --------- --------- ---------
Gross profit 37,339 27,960 57,374 39,676
Selling, general and
administrative expenses 16,785 13,181 36,388 30,148
-------- --------- --------- ---------
Operating profit 20,554 14,779 20,986 9,528
Interest and financing charges,
net 583 853 861 1,374
-------- --------- --------- ---------
Income before income taxes 19,971 13,926 20,125 8,154
Income tax expense 8,591 5,431 8,654 3,252
-------- --------- --------- ---------
Net income $11,380 $8,495 $11,471 $4,902
======== ========= ========= =========
Basic net income
per common share $1.65 $1.25 $1.67 $0.73
======== ========= ========= =========
Diluted net income per
common share $1.50 $1.16 $1.54 $0.67
======== ========= ========= =========
Weighted average shares outstanding:
Basic 6,899,577 6,778,757 6,885,211 6,732,107
Diluted 7,571,172 7,292,321 7,428,187 7,350,505
Balance Sheet Data (in thousands): At Oct. 31, At Oct. 31,
2003 2002
----------- -----------
Working Capital $59,128 $51,927
Inventory 40,498 47,233
Total Assets 146,552 135,766
Outstanding Borrowings 43,418 49,729
Total Shareholders' Equity $67,387 $60,048
Contacts:
G-III Apparel Group, Ltd.
Wayne S. Miller, 212-403-0500
or
ICR, Inc.
Investor Relations:
James Palczynski, 203-222-9013