For the three-month period ended July 31, 2005, G-III reported net sales of $54.6 million and a net loss of $301,000, or $0.04 per share, compared to net sales of $44.0 million and a net loss of $1.7 million, or $0.23 per share, last year. For the six-month period, G-III reported net sales of $68.3 million and a net loss of $5.0 million, or $0.68 per share, compared to net sales of $60.5 million and a net loss of $6.5 million, or $0.91 per share, last year.
The Company's results of operations for three and six months ended July 31, 2005 include the results of the Company's new 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 prior year's second quarter and six-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, “With our recent acquisitions of Marvin Richards and Winlit, we feel that our company is better positioned in the marketplace and better able to deliver profit growth. We are thrilled to represent Calvin Klein in both women's and men's outerwear. We are pleased with the overall state of our business and with our stronger position in the market. In addition, our sports apparel business continues to gain momentum in both bookings and shipments compared to last year. We believe that we can deliver a strong Fall season.”
Mr. Goldfarb continued, “The acquisitions of Marvin Richards and Winlit truly was a transforming event for our Company. Marvin Richards and Winlit provide us with further strength in design, sourcing and sales. In addition, we believe, we have solidified our penetration of distribution channels in both women's and men's outerwear.”
Mr. Goldfarb concluded, “Our near-term focus will be on integrating the operations of our acquired businesses and capitalizing on the broad portfolio of brands that we now have.”
Also today, G-III Apparel Group issued guidance for the fiscal year ending January 31, 2006. For the fiscal year ending January 31, 2006, the Company is forecasting net sales in the range of $330 to $340 million and diluted net income per share between $.95 and $1.00.
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 Six Months Ended
7/31/05 7/31/04 7/31/05 7/31/04
-------- -------- -------- --------
Net sales $ 54,553 $ 43,974 $ 68,320 $ 60,472
Cost of sales 41,804 33,354 54,656 48,113
-------- -------- -------- --------
Gross profit 12,749 10,620 13,664 12,359
Selling, general and
administrative expenses 12,600 11,789 21,703 21,923
Write down of equity investment 882 882
-------- -------- -------- --------
Operating profit/(loss) 149 (2,051) (8,039) (10,446)
Interest and financing charges,
net 527 197 530 270
-------- -------- -------- --------
Loss before income taxes (378) (2,248) (8,569) (10,716)
Income tax benefit (77) (588) (3,599) (4,229)
-------- -------- -------- --------
Net loss $ (301) $ (1,660) $ (4,970) $ (6,487)
======== ======== ======== ========
Basic net loss per common
Share $ (0.04) $ (0.23) $ (0.68) $ (0.91)
======== ======== ======== ========
Diluted net loss per
common share $ (0.04) $ (0.23) $ (0.68) $ (0.91)
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 7,491,186 7,162,467 7,338,163 7,140,701
Diluted 7,491,186 7,162,467 7,338,163 7,140,701
