G-III Apparel Group Ltd., which is a major apparel licensee of professional and collegiate sports brands, reported net sales for the fiscal year ended Jan. 31 were up 23 percent to $2.12 billion from $1.72 billion in the prior year. The full year sales growth was driven by strong performances from the company’s wholesale businesses, as well as by the retail sales of the G.H. Bass & Co. business that was acquired in November 2013.

The company reported GAAP net income for the fiscal year ended Jan.  31, 2015, of $110.4 million, or $4.97 per diluted share, compared to $77.4 million, or $3.71 per diluted share, in the prior year.

On an adjusted basis, excluding items resulting in other income in the current fiscal year equal to $0.43 per share, net of taxes, and expenses associated with the acquisition of G.H. Bass & Co. and other potential transactions equal to $0.03 per share, net of taxes, in the prior year, non-GAAP net income per diluted share for the current fiscal year increased 21 percent to $4.54 from $3.74 in the prior fiscal year.

For the fiscal year ended Jan.  31, 2015, adjusted EBITDA increased by 27 percent to $186.6 million from $146.5 million in the prior fiscal year.

For the fourth quarter ended Jan. 31, 2015, G-III reported that net sales increased by 9 percent to $514.3 million from $472.8 million in the fourth quarter last year, driven by broad strength in the company’s wholesale and retail businesses. Fourth quarter net income per diluted share increased by 55 percent to $0.96 per diluted share from $0.62 per diluted share in the fourth quarter of the prior year.

On an adjusted basis, excluding expenses equal to $0.02 per share, net of taxes, in the current fiscal fourth quarter related to other income items, non-GAAP net income per diluted share for the fourth quarter increased 58 percent to $0.98 per diluted share from $0.62 per diluted share in the prior year’s comparable period.

“Fiscal 2015 was another strong year of sales and profit growth for G-III,” said G-III Chairman, CEO and President Morris Goldfarb. “We drove strong performances across our portfolio of businesses, solidified our market position, and successfully executed across a range of strategic initiatives, including the integration and repositioning of the G.H. Bass business we acquired in the fourth quarter of last year. We are pleased to have achieved another record year for both net sales and net income per share.”

Goldfarb concluded, “We will continue on our strategic path, which incorporates a combination of organic and acquisition-related growth. Our overall strategy is designed to drive continued growth and support our ability to consistently deliver superior levels of value to our shareholders.”

Outlook

G-III Apparel Group issued guidance for the fiscal year ending Jan.  31, 2016 calling for net sales of approximately $2.37 billion and net income between $116 million and $122 million, or between $5.05 and $5.25 per diluted share. The company is also projecting adjusted EBITDA for fiscal 2016 to be between $214 million and $224 million.

For the first fiscal quarter ending April 30, 2015, the company is forecasting net sales of approximately $406 million and net income between $1.1 million and $3.5 million, or between $0.05 and $0.15 per diluted share. This compares to net sales of $366.2 million and net income of $1.3 million, or $0.06 per diluted share, in the first fiscal quarter of last year.

Non-GAAP Financial Measures

Reconciliations of GAAP net income per share to Non-GAAP net income per share and of GAAP net income to adjusted EBITDA are presented in tables accompanying the condensed financial statements included in this release and provide useful information to evaluate the company’s operational performance. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the company’s financial results for the full fiscal 2015 year prepared in accordance with GAAP.

About G-III Apparel Group, Ltd.

G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as footwear, luggage and women’s handbags, small leather goods and cold weather accessories, under licensed brands, its own brands and private label brands. Through its team sports business, it owns licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Touch by Alyssa Milano and more than 100 U.S. colleges and universities. Its other owned brands include Bass, G.H. Bass, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. 


G-III APPAREL GROUP, LTD. AND SUBSIDIARIES


(GIII)


CONSOLIDATED STATEMENTS OF OPERATIONS



(In thousands, except per share amounts)



(Unaudited)















 



Three Months Ended



Twelve Months Ended





 

1/31/15


 



 

1/31/14


 



 

1/31/15


 



 

1/31/14


 

Net sales



$

514,323




$

472,755




$

2,116,855




$

1,718,231


Cost of sales



 

330,833

 



 

306,568

 



 

1,359,596

 



 

1,133,222

 

Gross profit




183,490





166,187





757,259





585,009


Selling, general and administrative expenses





141,558






140,177






571,990






440,506



Depreciation and amortization



 

5,604

 



 

4,154

 



 

20,374

 



 

13,676

 

Operating profit




36,328





21,856





164,895





130,827


Other income (expense)




(462

)










11,488








Interest and financing charges, net



 

(1,954

)



 

(2,415

)



 

(7,942

)



 

(8,599

)

Income before taxes




33,912





19,441





168,441





122,228


Income tax expense



 

11,692

 



 

6,767

 



 

59,450

 



 

45,826

 

Net income




22,220





12,674





108,991





76,402


Add: Loss attributable to non-controlling interest



 



 



 

381

 



 

1,370

 



 

958

 





















 

Income attributable to G-III



$

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