G-III APPAREL GROUP, LTD.
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 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 --
New York, New York - September 4, 2003 -- 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
(FINANCIAL TABLE TO FOLLOW)
G-III APPAREL GROUP, LTD. PAGE: 3
SECOND QUARTER RESULTS OF FISCAL 2004
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 $ 0.40 $ 0.09 $ 0.01 $ (0.54)
Share =============== ============= =========== ===========
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, 2003 At July 31, 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
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