G-III Apparel Group, Ltd. reported net sales for the first quarter ended April 30, 2011 increased by 28 percent to $196.9 million from $154.3 million in the year-ago period.


The companys net loss for the first quarter was $500,000, or 3 cents per share, compared to a net loss of $1.4 million, or 7 cents per share, in the prior years comparable period.

We continue to be pleased with the growth and health of our core businesses and with the handbag and luggage opportunities we have for the upcoming Fall season, said Morris Goldfarb, G-IIIs chairman and chief executive officer. We have achieved our booking targets, built the capability to launch a significant and compelling business in the handbag and luggage categories, and continued to improve our ability to execute more effectively and efficiently through expansion and enhancement of our operating infrastructure.


Goldfarb concluded, We believe that our diversification by category will drive our long-term growth. The development of our business is well supported by a strong balance sheet, strategic partnerships, and a highly capable management team. We look forward to demonstrating our ability to drive value to our stakeholders.


Outlook


The company reiterated its prior guidance for the full fiscal year ending Jan. 31, 2012 and continues to forecast net sales of approximately $1.2 billion and net income of between $64.5 million and $66.5 million, or a range of $3.15 and $3.25 per diluted share.


The company also continues to project EBITDA for fiscal 2012 to increase approximately 14% to 18% to approximately $117 million to $121 million. EBITDA should be evaluated in light of the Companys financial results prepared in accordance with US GAAP. A reconciliation of EBITDA to net income in accordance with US GAAP is included in a table accompanying the condensed financial statements in this release.

For its second fiscal quarter ending July 31, 2011, the company is forecasting net sales of approximately $215 million compared to $189.0 million in the comparable quarter last year. The company is also forecasting net income for the second fiscal quarter between $3.7 million and $4.5 million, or between 18 cents and $0.22 per diluted share, compared to net income of $3.0 million, or 15 cents per diluted share, in last years second quarter. 























































































































































































































































G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND


SELECTED BALANCE SHEET DATA


 


(In thousands, except per share amounts)

 
  First Quarter Ended April 30,
(Unaudited)
 
2011 2010
 
Net sales $ 196,871 $ 154,278
 
Cost of sales   137,416     105,241  
 
Gross profit 59,455 49,037
 
Selling, general and administrative expenses 57,925 49,682
 
Depreciation and amortization   1,524     1,280  
 
Operating profit (loss) 6 (1,925 )
 
Equity in loss of joint venture 99 –
 
Interest and financing charges, net   759     362  
 
Loss before income taxes (852 ) (2,287 )
 
Income tax benefit   (332 )   (915 )
 
Net loss $ (520 ) $ (1,372 )
 
Net loss per common share:
 
Basic and Diluted $ (0.03 ) $ (0.07 )
 
Weighted average shares outstanding (Basic and Diluted) 19,719 18,903