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 THIRD
QUARTER FISCAL 2004 RESULTS
-- NET SALES INCREASE 22.7% TO $125.5 MILLION --
-- NET INCOME INCREASES 34.0% TO $11.4 MILLION ---
New York, New York - December 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 which 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. AND SUBSIDIARIES
(NASDAQ:GIII)
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
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