G-III Apparel Group, Ltd. reported net sales grew 18 percent in the first quarter to $433.0 million compared to $366.2 million in the year-ago period. The company’s net income for the first quarter was $6.8 million, or 15 cents per diluted share, as compared to $1.3 million, or 3 cents per diluted share, in the prior year’s comparable period.
Morris Goldfarb, G-III’s Chairman, Chief Executive Officer and President, said, “We designed and delivered compelling product and maintained good sell-throughs, in addition to building a strong order book for the upcoming fall season. Across our business, we met and exceeded plans for both sales and margins. Our performance included powerful organic growth across the full range of our wholesale businesses, led by Calvin Klein and dress businesses such as Eliza J and Vince Camuto. The momentum continued with respect to our turnaround and repositioning of the G.H. Bass business that we acquired in November 2013.”
Goldfarb concluded, “We are pleased to continue to report improved results while also delivering value to our shareholders. We are continuing to demonstrate our ability to simultaneously drive organic sales growth, further diversify our business, and enhance our profitability.”
Outlook
The company today revised its prior guidance for the full fiscal 2016 year ending January 31, 2016. The company is now forecasting net sales of approximately $2.40 billion and net income between $123 million and $128 million, or a range between $2.66 and $2.76 per diluted share, compared to its previous guidance of net sales of approximately $2.37 billion and net income between $116 million and $122 million, or a range between $2.53 and $2.63 per diluted share. For the fiscal 2015 year ended January 31, 2015, net sales were $2.12 billion and net income was $110.4 million, or $2.48 per diluted share.
On an adjusted basis, excluding items resulting in other income in Fiscal 2015 of $0.22 per share, net of taxes, non-GAAP net income per diluted share was $2.26 for the 2015 fiscal year.
The company is now projecting adjusted EBITDA for fiscal 2016 to increase between 21 percent and 25 percent, to between approximately $225 million and $233 million as compared to its previous guidance of between $214 million and $224 million. Adjusted EBITDA for fiscal 2015 was $186.6 million.
For its second fiscal quarter ending July 31, 2015, the company is forecasting net sales of approximately $470.0 million compared to $424.0 million in the comparable quarter last year. The company is also forecasting net income for the second fiscal quarter between $6.9 million and $9.3 million, or between $0.15 and $0.20 per diluted share, compared to net income of $6.2 million, or $0.14 per diluted share, in last year’s second quarter.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, women's suits, women's performance wear, footwear, luggage, women's handbags, small leather goods and cold weather accessories under licensed brands, owned brands and private label brands. G-III sells swimwear, resort wear, and related accessories under our own Vilebrequin brand. G-III also sells outerwear, dresses, and performance wear under our own Andrew Marc and Marc New York brands, and has licensed these brands to select third parties in certain product categories. G-III has fashion licenses under the Calvin Klein, Kenneth Cole, Cole Haan, Guess?, Tommy Hilfiger, Jones New York, Jessica Simpson, Vince Camuto, Ivanka Trump, Ellen Tracy, Kensie, Levi's and Dockers brands. Through our team sports business, we have 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 Bass, G.H. Bass, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. G-III also operates retail stores under the Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance name
