G-III Apparel Group, Ltd. sales grew 13.6% in the three-month period ended Jan. 31, to $193.8 million from $170.7 million
during the comparable period last year. Net income was $9 million, or 49 cents a share, compared to a net loss of $32.1 million, or $1.93, after special charges for the comparable
period last year.
Excluding the effects of the tax benefit this year and
the non-cash charges for the impairment of goodwill and trademarks
during the fourth quarter last year, adjusted net income per diluted
share was 40 cents for the three months ended January 31, 2010 compared to
an adjusted net loss per share of 23 cents in the comparable period last
year.
For the fiscal year ended January 31, 2010, G-III reported net sales increased by 12.6% to $800.9 million from $711.1 million last year. Net income per diluted share was $1.83 compared to a net loss per diluted share of $0.85 last year. The Company noted that the current year’s fourth quarter results included a one-time tax benefit related to an increase in an acquired net operating loss of $1.6 million, or $0.09 per share. The prior year’s fourth quarter results included non-cash charges for the impairment of goodwill and trademarks of $33.5 million on a pre-tax basis, equal to $1.69 per share on an after-tax basis. Excluding the effects of the tax benefit this year and the non-cash charges last year, adjusted net income per diluted share was $1.74 for the fiscal year ended January 31, 2010 compared to $0.84 last year.
For the fiscal year ended January 31, 2010, EBITDA increased 68% to $61.6 million from $36.6 million in the prior fiscal year. EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with GAAP. A reconciliation of EBITDA to net income/(loss) in accordance with GAAP is included in a table accompanying the condensed financial statements in this release.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We had a strong fourth quarter and finished the year with good momentum heading into spring. The net proceeds of almost $35 million that we received as a result of a public offering of our shares in December 2009 further strengthened our financial position. Over the course of the year, we made substantial progress toward our overall goal of building our Company into an all season diversified apparel company. We are achieving a strategic balance of powerful licenses, company-owned brands and private label programs by consistently executing well and adding value to our customers.”
Goldfarb continued, “We have built a solid infrastructure for outerwear, dresses and now sportswear. Our order book indicates that our momentum is intact in the short term as we develop significant long-term opportunities. Our Wilson’s retail outlet business is now positioned for profitability. We expect to continue to grow our business organically and to augment that growth with strategic acquisitions when the right opportunities present themselves. We believe that the combination of these efforts will lead to a sustained ability to create value for our customers and for our shareholders.”
Outlook
The Company is forecasting net sales of approximately $135 million for its first fiscal quarter ending April 30, 2010, compared to $107.6 million in last year’s first fiscal quarter. The Company is also forecasting a net loss between $3.3 million and $4.3 million, or between $0.18 and $0.23 per share, compared to a net loss of $6.8 million, or $0.41 per share, in last year’s first fiscal quarter. The weighted average shares outstanding for the first quarter are forecasted to increase to 18.7 million from 16.7 million in last year’s first quarter, primarily due to the sale by the Company of approximately 1.9 million shares in a public offering in December 2009. The first quarter historically results in seasonal losses for the Company.
