Exhibit 99.1
For: G-III Apparel Group, Ltd.
CONTACT: INVESTOR RELATIONS
James Palczynski
(203) 222-9013
G-III Apparel Group, Ltd.
Wayne S. Miller, Chief Financial Officer
(212) 403-0500
G-III APPAREL GROUP, LTD. ANNOUNCES FIRST QUARTER FISCAL 2004 RESULTS
--Net Sales Increase by 47.4 % to $18.7 Million--
--Gross Profit Percentage Increases to 23.3% From 7.1%--
--NET LOSS DECREASES BY 37.0% TO $2.6 MILLION--
New York, New York - May 29, 2003 -- G-III Apparel Group, Ltd. (Nasdaq:
GIII) today announced operating results for first quarter of fiscal 2004.
For the three-month period ended April 30, 2003, G-III reported net sales
of $18.7 million and a net loss of $2.6 million, or $0.38 per share, compared to
net sales of $12.7 million and a net loss of $4.2 million, or $0.62 per share,
during the comparable period last year.
Morris Goldfarb, G-III's Chief Executive Officer, said, "We are pleased
that we have begun the new fiscal year at a strong pace for what is
traditionally our weakest quarter of the year. Our sports apparel business
continues to expand both in product depth and management expertise. We have
added quality personnel in design, sourcing, sales and customer service to
support its continued growing retail distribution."
The Company noted that the growth in revenue and improvement in gross
profit percentage were primarily the result of increased shipments of sports
apparel, the absence of losses incurred in last year's quarter relating to the
Indonesian facility that was closed by the Company in the fourth quarter of
fiscal 2003 and a reduction in clearance activity compared to the prior year's
quarter. Additionally, due to the closing of the Company's manufacturing
facility in Indonesia and related transition to additional third-party
manufacturing, the Company benefited from a reduced need for raw material and
work in process inventories, resulting in a decrease in overall inventories to
$31.2 million as of April 30, 2003 from $40.5 million as of April 30, 2002. The
Company expects that results of operations for the balance of the fiscal year
will be favorably impacted by the elimination of the losses associated with
operating the Indonesian facility.
Mr. Goldfarb continued, "We are excited about the year ahead. While it
remains somewhat early to forecast our earnings for the full fiscal year, we
anticipate a good fall season. G-III is becoming a stronger, more flexible
company. We believe we have an excellent opportunity to take our business to
higher levels of profitability and we look forward to capitalizing on the
opportunities ahead of us."
For the second quarter ending July 31, 2003, the Company is forecasting net
sales of approximately $44.0 million and diluted earnings per share between
$0.10 and $0.12. In last year's second quarter, net sales were $40.0 million and
diluted earnings per share were $0.08.
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 and Siena Studio. 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 AND
SELECTED BALANCE SHEET DATA
(in thousands, except share and per share amounts)
(Unaudited)
First Quarter Ended April 30,
-----------------------------
(Unaudited)
2003 2002
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Net sales $ 18,712 $ 12,691
Cost of sales 14,358 11,788
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Gross profit 4,354 903
Selling, general and administrative expenses 8,759 7,514
----------- -----------
Operating loss (4,405) (6,611)
Interest and financing charges, net 48 125
----------- -----------
Loss before income taxes (4,453) (6,736)
Income tax benefit (1,826) (2,567)
----------- -----------
Net loss $ (2,627) $ (4,169)
=========== ===========
Net loss per common share:
Basic and Diluted $ (0.38) $ (0.62)
=========== ===========
Weighted average number of common shares outstanding 6,875,830 6,702,370
BALANCE SHEET DATA:
Working Capital $ 44,687 $ 42,176
Cash 3,537 339
Inventory 31,201 40,497
Total Assets 65,659 69,235
Outstanding Borrowings 770 3,304
Total Shareholders' Equity $ 53,142 $ 50,656