For the quarter ended April 30, 2014, G-III Apparel Group, Ltd. reported that net sales increased by 34 percent to $366.2 million from $272.6 million in the year-ago period. Of this increase, $44.2 million was the result of net sales by the G.H. Bass business that was acquired in November 2013. The company's net income for the first quarter was $1.3 million, or $0.06 per diluted share, as compared to $1.1 million, or $0.05 per diluted share in the prior year's comparable period. The results for the first quarter include expenses related to the transition and repositioning of the recently acquired G.H. Bass business.
“Our wholesale revenues were strong, exceeding our plan across a number of important categories,” said Morris Goldfarb, G-III's chairman, chief executive officer and president. “We finished the quarter with good momentum, clean inventories and a solid mix of growth opportunities. There were strong performances by a number of our Calvin Klein divisions, Vilebrequin and several of our dress businesses, all of which enabled us to exceed our forecast for the first quarter.”
Goldfarb concluded, “Although our comparable store sales for Wilsons were modestly positive for the quarter overall, we saw an accelerating trend in April. We are pleased with the progress we are making with respect to the integration of G.H. Bass into our operational platform.”
Outlook
The company today revised its prior guidance for the full fiscal 2015 year ending January 31, 2015. The company is now forecasting net sales of approximately $2.06 billion and net income between $87.9 million and $91.2 million, or a range between $4.05 and $4.20 per diluted share, compared to its previous guidance of net sales of approximately $2.05 billion and net income between $85.2 million and $88.5 million, or a range between $3.95 and $4.10 per diluted share. For the fiscal year ended January 31, 2014, net sales were $1.72 billion and net income was $77.4 million, or $3.71 per diluted share.
The company is now projecting adjusted EBITDA for fiscal 2015 to increase between 16 percent and 19 percent, to between approximately $170.2 million and $175.5 million as compared to its previous guidance of between $166.3 million and $171.5 million. Adjusted EBITDA for fiscal 2014 was $147.1 million. Adjusted EBITDA should be evaluated in light of the company's financial results prepared in accordance with U.S. GAAP. A reconciliation of GAAP net income to adjusted EBITDA is included in a table accompanying the condensed financial statements in this release.
For its second fiscal quarter ending July 31, 2014, the company is forecasting net sales of approximately $392 million compared to $304.2 million in the comparable quarter last year. The company is also forecasting net income for the second fiscal quarter between $2.8 million and $3.7 million, or between $0.13 and $0.17 per diluted share, compared to net income of $3.6 million, or $0.17 per diluted share, in last year's second quarter.
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, Nine West, Ellen Tracy, Kensie, Mac & Jac, Levi's and Dockers brands. Through its team sports business, it has 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, Jessica Howard and Winlit. G-III also operates retail stores under the Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin, Calvin Klein Performance and Andrew Marc names.
