G-III Apparel Group, Ltd. Announces Second Quarter Fiscal 2004 Results
-- Net Sales Increase to $45.3 Million from $40.0 million
-- Operating Profit Increases to $4.8 Million from $1.4 million
-- Diluted Net Income Per Share Increases to $0.37 from $0.08
G-III Apparel Group, Ltd. (Nasdaq: GIII) today announced operating results for the second quarter of fiscal 2004.
For the three-month period ended July 31, 2003, G-III reported net sales of $45.3 million and net income of $2.7 million, or $0.37 per diluted share, compared to net sales of $40.0 million and net income of $576,000, or $0.08 per diluted share, during the comparable period last year.
For the six-month period ended July 31, 2003, G-III reported net sales of $64.0 million and net income of $91,000, or $0.01 per diluted share, compared to net sales of $52.7 million and a net loss of $3.6 million, or $0.54 per diluted share, during the comparable period last year.
Morris Goldfarb, G-III's Chief Executive Officer, said, "We are very pleased to report a strong second quarter, with strong operating margins. Our profit growth was driven by continued strength in our sports apparel business, which saw both significant new accounts as well as increased penetration. The sportswear component of our sports apparel business attained higher gross margins compared to our other businesses."
Mr. Goldfarb continued, "We believe, based on feedback from customers with regard to our product assortment and a good order book, we are well positioned for the fall season."
Also today, G-III Apparel Group issued guidance for the fiscal year ending January 31, 2004. For the fiscal year, the Company is forecasting 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 50 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)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
7/31/03 7/31/02 7/31/03 7/31/02
Net sales $ 45,299 $ 40,022 $ 64,011 $ 52,713
Cost of sales 29,618 29,209 43,976 40,997
---------- ---------- ---------- ----------
Gross profit 15,681 10,813 20,035 11,716
Selling, general and
administrative expenses 10,844 9,453 19,603 16,967
---------- ---------- ---------- ----------
Operating profit (loss) 4,837 1,360 432 (5,251)
Interest and financing
charges, net 230 396 278 521
---------- ---------- ---------- ----------
Income (loss) before
income taxes 4,607 964 154 (5,772)
Income tax expense
(benefit) 1,889 388 63 (2,179)
---------- ---------- ---------- ----------
Net income (loss) $ 2,718 $ 576 $ 91 $ (3,593)
========== ========== ========== ==========
Basic net income (loss)
per common Share $ 0.40 $ 0.09 $ 0.01 $ (0.54)
========== ========== ========== ==========
Diluted net income (loss)
per common share $ 0.37 $ 0.08 $ 0.01 $ (0.54)
========== ========== ========== ==========
Weighted average shares
outstanding:
Basic 6,879,920 6,714,200 6,877,909 6,708,383
Diluted 7,385,396 7,379,809 7,325,347 6,708,383
Balance Sheet Data (in thousands):
At July 31, At July 31,
2003 2002
---------- ----------
Working Capital $ 47,480 $ 42,957
Cash 434 360
Inventory 59,393 60,645
Total Assets 115,017 115,135
Outstanding Borrowings 33,298 39,971
Total Shareholders' Equity $ 55,874 $ 51,234
Contacts:
Investor Relations
James Palczynski, 203-222-9013
or
G-III Apparel Group, Ltd.
Wayne S. Miller, 212-403-0500