G-III Apparel said for the first quarter ended April 30, increased by 16.5 percent to $229.4 million, a record for its first fiscal quarter, from $196.9 million in the year-ago period. The company’s net loss for the first quarter was $847,000, or 4 cents per share, compared to a net loss of $520,000, or 3 cents per share, in the prior year's comparable period.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Our first quarter results met our expectations. We anticipate improved profitability for the full year as we expect input costs will moderate compared to prior year levels. Early booking trends for fall are good and give us confidence in our outlook for the full year.”
Goldfarb continued, “We believe we have a clear strategic advantage for us that our major growth initiatives, across a variety of categories, are underpinned by some of the best brands in the world. We are building significant businesses in a number of important categories. We are creating several platforms that are expected to show operating margin improvements as we increase in sales volume. In addition, we plan to layer on additional brands to these platforms.”
Goldfarb concluded, “We have successfully diversified our operations, aligned ourselves with powerful brands, and continued to drive efficiency. As a result of this strategy, we believe we have enhanced our ability to generate long-term value for our shareholders.”
Outlook
The company reiterated its prior guidance for the full fiscal year ending January 31, 2013 and continues to forecast net sales of approximately $1.35 billion and net income of between $54.0 million and $56.0 million, or a range of $2.62 and $2.72 per diluted share. The company also continues to project EBITDA for fiscal 2013 to increase approximately between 11% and 15% to approximately $102.5 million to $106.0 million. EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to net income in accordance with U.S. GAAP is included in a table accompanying the condensed financial statements in this release.
For its second fiscal quarter ending July 31, 2012, the company is forecasting net sales of approximately $250.0 million compared to $230.0 million in the comparable quarter last year. The company is also forecasting net income for the second fiscal quarter between $800,000 and $1.6 million, or between $0.04 and $0.08 per diluted share, compared to net income of $1.6 million, or $0.08 per diluted share, in last year’s second quarter.
G-III sells outerwear and dresses under our own Andrew Marc, Marc New York and Marc Moto brands and has licensed these brands to select third parties in certain product categories. G-III has fashion licenses under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Vince Camuto, Nine West, Ellen Tracy, Tommy Hilfiger, Kensie, Mac & Jac, Levi's and Dockers brands and sports 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. Our other owned brands include Jessica Howard, Eliza J, Black Rivet, G-III, G-III Sports by Carl Banks and Winlit.
