G-III Apparel Group, Ltd. reported net sales of $35.1 million and a net loss of $6.4 million, or 42 cents per share, for the fiscal first quarter ended April 30, compared to net sales of $14.4 million and a net loss of $8.9 million, or 72 cents per share, during the comparable period last year.

Morris Goldfarb, Chairman and Chief Executive Officer, said, “We are pleased with the results in the first quarter, which start to show the influence of our strategy to build our non-outerwear business. Our sportswear and women’s suit and dress categories each contributed to the overall improvement in financial performance. With the recently announced asset acquisition of the Jessica Howard, Eliza J. and Industrial Cotton businesses, we believe that we have accelerated our growth opportunities in the dress and junior sportswear areas.”

Mr. Goldfarb concluded, “Our bookings are strong for the important upcoming fall and holiday season with the exception of a decline in our outerwear private label programs which is primarily attributable to one customer. Our Calvin Klein businesses are projected to be up in excess of 50% this year. In addition, we are seeing a good reaction to the vast majority of our programs in the mid-tier and better channels of distribution and believe that we are poised to complete another strong year.”

G-III Apparel Group issued guidance for the fiscal year ending January 31, 2008, including the expected impact of the recent asset acquisition. For the fiscal year ending January 31, 2008, the company is forecasting net sales of approximately $500 million and net income per diluted share between $0.90 and $0.95. Although G-III expects the recently announced acquisition to be accretive in its first twelve months, it is forecasting a loss of approximately 5 cents to 10 cents per share from the recently acquired operations for this fiscal year. This expectation is included in the company’s per share estimates for fiscal 2008. The company’s fiscal 2008 estimates compare to fiscal 2007 diluted net income per share of 94 cents. G-III noted that fiscal 2007 results included a reversal of tax reserves of approximately $950,000, or $7 cents per diluted share. The company’s full year diluted shares are forecasted to increase to approximately 17.1 million, up from 14.0 million, due in part to the company’s public offering, which closed in March 2007.

G-III is projecting EBITDA for fiscal 2008 to increase approximately 16% to 20% to a range of approximately $37.3 million to $38.7 million, up from $32.3 million in fiscal 2007. EBITDA results should be evaluated in light of the company’s financial results prepared in accordance with GAAP.

With respect to the second fiscal quarter ending July 31, 2007, G-III is forecasting net sales of approximately $75 million and a net loss per share between 19 cents and 24 cents as compared to net sales of $69.1 million and a net loss per share of 14 cents in last year’s second fiscal quarter. The lower net sales growth and higher second quarter loss is primarily attributable to the impact of lower projected sales of private label outerwear programs and retailers pushing back outerwear delivery dates to better coincide with consumer demand. The company noted that the second fiscal quarter historically results in seasonal losses. 

              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS AND
                     SELECTED BALANCE SHEET DATA
          (in thousands, except share and per share amounts)
                             (Unaudited)

                                           First Quarter Ended April
                                                       30,
                                           ---------------------------
                                                   (Unaudited)

                                               2007          2006
                                           ------------- -------------

Net sales                                  $     35,088  $     14,389

Cost of sales                                    27,759        13,710
                                           ------------- -------------

Gross profit                                      7,329           679

Selling, general and administrative
 expenses                                        16,493        14,339

Depreciation and amortization                     1,594         1,084
                                           ------------- -------------

Operating loss                                  (10,758)      (14,744)

Interest and financing charges, net                 265           647
                                           ------------- -------------

Loss before income taxes                        (11,023)      (15,391)

Income tax benefit                               (4,575)       (6,541)
                                           ------------- -------------

Net loss                                   $     (6,448) $     (8,850)
                                           ============= =============

Net loss per common share:

  Basic and Diluted                        $      (0.42) $      (0.72)
                                           ============= =============