G-III Apparel Group saw its acquisitions of Winlit and Marvin Richards add substantial help on top of its organic sales growth during the fiscal third quarter ended October 31. On a conference call with analysts, management referred to “a very different G-III Apparel Group,” occupying “in excess of 40% of retail space in some of the department stores.”

Third quarter net sales increased 61.7% to $186.6 million from $115.4 million last year. Management said that “about 90%” of the increase was attributable to acquisitions, or approximately $64.1 million. Gross margin was flat at 29.5% of sales, but was still at a “seasonally high” number. SG&A expenses increased 60 basis points to 14.6% of sales, primarily as a result of costs associated with the acquired businesses. Net income for the third quarter increased 49.7% to $14.8 million, or $1.73 per diluted share, from $9.9 million or $1.33 per diluted share during the comparable period last year.

GIII said that outerwear “had very good sell-throughs” in department stores, leaving management “very optimistic” for the remaining year. Mass market was “okay” with “fairly good” sell-through at mid-tier retailers like J.C. Penney and Kohl’s. The luxury business was said to be “a bit more challenging.”

Looking at the fiscal year ending January 31, 2006, the company reiterated its forecast of net sales in the range of $330 to $340 million, but lowered diluted EPS guidance to 85 cents to 90 cents per share due to an 11 cents per share charge related to the vesting of restricted shares of common stock.