GIII-Apparel Group, Ltd. Announces First Quarter Fiscal 2002 Results
NEW YORK, May 31, 2001 -- G-III Apparel Group, Ltd. (Nasdaq:GIII) today announced operating results for the first quarter of fiscal 2002, ended April 30, 2001.
Net sales increased 62.3% to $17.2 million, compared to $10.6 million in the prior year's first quarter. The net loss for the quarterwas $2.9 million, or $0.44 per share, compared to $2.5 million, or $0.38 per share, in the prior year's first quarter. As anticipated, start-up costs for new business lines under the Jones New York, Cole Haan, and Caterpillar labels were primarily responsible for the year-over-year decline.
Morris Goldfarb, G-III's Chief Executive Officer, said: "We continue to be very pleased with the pace of our business and the strong response to both our non-licensed and licensed product lines. Orders received continue to be up substantially compared to this time last year. While the retail environment remains challenging, outerwear inventories at our major customers are clean due to a successful fall season last year. While it is somewhat early to garner a definite read on our third quarter outlook, we remainconfident in our ability to achieve our operating targets for the remainder of the year."
The Company continues to expect diluted earnings per share for fiscal 2002 to be between $1.65 and $1.70 on a revenueincrease of 15% to 17%. The Company's first quarter sales were higher and the net loss per share lower than previousexpectations due to earlier than anticipated shipping of merchandise. Additionally, the Company expressed comfort with anexpected range for second quarter earnings per diluted share of $0.50 to $0.52.
G-III Apparel Group is a leading manufacturer and distributor of leather and non-leather outerwear apparel. The Company hasfashion licenses with Kenneth Cole Productions, Nine West Group, Cole Haan, and Jones Apparel Group, a distributionagreement for Caterpillar apparel and licensing agreements with the National Football League, National Hockey League, NationalBasketball 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 otherfinancial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made orexpectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term isdefined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors include, butare not limited to, reliance on foreign manufacturers, the nature of the apparel industry, including changing customer demand andtastes, seasonally, customer acceptance of new products, the impact of competitive products and pricing, dependence on existingmanagement, general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
First Quarter Ended April 30,
2002 2001
Net sales $ 17,167 $ 10,578
Cost of sales 14,217 8,398
Gross profit 2,950 2,180
Selling, general and
administrative expenses 7,465 6,302
Operating loss (4,515) (4,122)
Interest and financing
charges, net 305 85
Loss before minority interest
and income taxes (4,820) (4,207)
Minority interest 9
Loss before income taxes (4,820) (4,198)
Income tax benefit (1,928) (1,679)
Net loss $ (2,892) $ (2,519)
Net loss per common share:
Basic and Diluted $ (0.44) $ (0.38)
Weighted average number of
common shares outstanding 6,645,047 6,614,379
Contact:
Investor Relations
James Palczynski, 203/222-9013
or
G-III Apparel Group, Ltd., New York
Wayne S. Miller, 212/403-0500