Acquisitions Help G-III Post 61.7% Third Quarter Sales Increase

G-III Apparel Group, Ltd. third quarter net sales increased by 61.7% to $186.6 million and net income per diluted share increased by 30.0% to $1.73. This compares to net sales of $115.4 million and net income per diluted share of $1.33 during the comparable period last year. Weighted average shares outstanding used in the diluted share calculation were 8,553,000 for the three months ended October 31, 2005 compared to 7,429,000 for the comparable period last year.

For the nine-month period ended October 31, 2005, G-III reported net sales of $254.9 million and net income per diluted share of $1.23, compared to net sales of $175.9 million and net income per diluted share of $0.46 during the comparable period last year. Weighted average shares outstanding used in the diluted share calculation were 7,995,000 for the nine months ended October 31, 2005 compared to 7,480,000 for the comparable period last year.

The Company's results of operations for the three and nine months ended October 31, 2005 include the results of the Company's Marvin Richards and Winlit divisions from July 11, 2005, the date the Company acquired the stock of Marvin Richards and certain assets from Winlit. The increases in net sales and net income per share during both periods were primarily due to including these two new divisions in the Company's results of operations. The three and nine-month results this year include an after-tax non-cash compensation charge of approximately $920,000, or $0.11 per share, related to the vesting of restricted shares of common stock previously granted to key management.

The prior year's nine-month results include a non-cash charge of $882,000, equal to $0.12 per share, associated with the Company's sale of its joint venture interest in a factory in China.

Morris Goldfarb, G-III's Chief Executive Officer, said, “We are pleased to be on plan to achieve our anticipated full-year financial performance and continue to make excellent progress with respect to integrating our recent acquisitions. In particular, our Calvin Klein outerwear continues to experience strong demand at retail.”

Mr. Goldfarb continued, “Our recent acquisitions have not only enabled us to improve the strength and depth of our management team, but have also re-energized our organization. We intend to capitalize on the improved strategic and operational position of our business and are focused on taking advantage of our position to grow our business.”

Mr. Goldfarb concluded, “We have begun a thorough process of identifying and implementing an updated set of best practices across our organization. We will continue to seek synergies and benefits from our recent acquisitions.”

With respect to guidance for the fiscal year ending January 31, 2006, the Company reiterates its forecast of net sales in the range of $330 to $340 million. Due to the non-cash compensation charge in connection with the vesting of restricted shares of common stock, equal to $0.11 per share on an after-tax basis, the Company is now forecasting net income per diluted share in the range of $0.85 to $0.90.

              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
                             (NASDAQ:GIII - News)

                 CONSOLIDATED STATEMENTS OF OPERATIONS

          (in thousands, except share and per share amounts)
                              (Unaudited)


                             Three Months Ended    Nine Months Ended
                            10/31/05   10/31/04   10/31/05   10/31/04
                           ---------- ---------- ---------- ----------

Net sales                  $ 186,621  $ 115,406  $ 254,941  $ 175,878
Cost of sales                131,503     81,358    186,159    129,471
                           ---------- ---------- ---------- ----------
Gross profit                  55,118     34,048     68,782     46,407
Selling general and
 administrative expenses      27,337     16,135     49,040     38,058
Write down of equity
 investment                                                       882
                           ---------- ---------- ---------- ----------
Operating profit              27,781     17,913     19,742      7,467
Interest and financing
 charges, net                  2,241        550      2,771        820
                           ---------- ---------- ---------- ----------
Income before income taxes    25,540     17,363     16,971      6,647
Income tax expense            10,727      7,466      7,128      3,237
                           ---------- ---------- ---------- ----------
Net income                 $  14,813  $   9,897  $   9,843  $   3,410
                           ========== ========== ========== ==========
Basic net income per
 common share              $    1.87  $    1.38  $    1.31  $    0.48
                           ========== ========== ========== ==========
Diluted net income per
 common share              $    1.73  $    1.33  $    1.23  $    0.46
                           ========== ========== ========== ==========


Weighted average shares outstanding:

        Basic              7,927,000  7,190,000  7,538,000  7,158,000
        Diluted            8,553,000  7,429,000  7,995,000  7,480,000