G-III Apparel Group, Ltd. reported net sales for the first quarter of $14.4 million, an increase of 4.3% from $13.8 million for the same period last year. Gross margins decreased 180 basis points to 4.8% of net sales form 6.6% during the year-ago quarter. The company’s net loss widened for the first quarter to $8.9 million from a loss of $4.7 million during last year’s first quarter, primarily due to the inclusion of Marvin Richards and Winlit, which were acquired in July 2005, as well as higher interest expenses and depreciation and amortization costs relating to these acquisitions.

For the second quarter, the company is forecasting net sales of approximately $60 million and a net loss per share between 30 cents and 35 cents. The company reaffirmed its previous guidance for the full fiscal year with net sales of approximately $400 million and diluted net income per share between 58 cents and 62 cents.