G-III Apparel Sees Robust Q2 Revenue Growth

G-III Apparel Group, Ltd. reported revenues grew 21 percent in the second quarter ended July 31, to $304.2 million from $251.5 million in the year-ago period. The company’s net income for the second quarter was $3.6 million, or 17 cents per share, compared to net income of $1.4 million, or 7 cents, in the prior year’s comparable period.

Net income in the prior year’s comparable period included $1.8 million of expenses associated with the company’s acquisition of Vilebrequin, equal to 6 cents per share, net of taxes.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We had an excellent second quarter. The results were driven by broad-based strength across many categories and brands in our portfolio. We believe that we are executing particularly well in a number of key areas, including design and merchandising, which positions us to deliver strong performance for the remainder of the year.”

Goldfarb concluded, “We have a powerful opportunity to continue to diversify our business, further penetrate key categories and layer on promising new organic growth initiatives, such as our multi-category launch of the Ivanka Trump collection and the rollout of full-priced Wilsons stores, which is still in a test mode. Our most recent acquisition, Vilebrequin, is performing well and provides us with a premier status brand in a new category. We believe that by focusing on the right mix of key, strategic opportunities and maintaining a disciplined approach to investment, we can continue to drive superior value to the full range of our constituents, including our customers, consumers, partners and shareholders.”

Outlook

The company today revised its prior guidance for the full fiscal year ending January 31, 2014. The company is now forecasting net sales of approximately $1.61 billion and net income between $68.6 million and $70.6 million, or a range between $3.30 and $3.40 per diluted share, compared to its previous guidance of net sales of approximately $1.57 billion and net income between $66.3 million and $68.4 million, or a range between $3.20 and $3.30 per diluted share.

The company is now projecting adjusted EBITDA for fiscal 2014 to increase between 16 percent and 19 percent to between $132.3 million and $135.4 million compared to its previous guidance of adjusted EBITDA between approximately $129.5 million and $132.8 million. 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 third fiscal quarter ending October 31, 2013, the company is forecasting net sales of approximately $620.0 million compared to $543.5 million in the comparable quarter last year. The company is also forecasting net income for the third fiscal quarter between $52.2 million and $54.2 million, or between $2.52 and $2.62 per diluted share, compared to net income of $48.3 million, or $2.37 per diluted share, in last year's third quarter. Net income in the prior year’s comparable period included $1.9 million of expenses associated with the company’s acquisition of Vilebrequin, equal to $0.06 per share, net of taxes.

G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, women's suits and women’s performance wear, as well as luggage and women’s handbags, small leather goods and cold weather accessories, under licensed brands, our own 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, performance wear and handbags 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, Sean John, Vince Camuto, Ivanka Trump, Nine West, Ellen Tracy, Kensie, Mac & Jac, 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. Its other owned brands include G-III Sports by Carl Banks, Eliza J, Black Rivet, Jessica Howard and Winlit. G-III also operates retail stores under the Wilsons Leather, Vilebrequin, Calvin Klein Performance and Andrew Marc names.