G-III Apparel Group, Ltd. said sales of licensed apparel, which includes sports licensed apparel from the four major sports leagues and the Touch by Alyssa Milano collection, increased 30.1% in the second quarter to $67.8 million from $52.1 million, primarily due to strength in Calvin Klein dresses.
Also driving the licensed gains was initial shipments of Ellen Tracy dresses and Dockers outerwear in the quarter, and the continuing roll out of Calvin Klein performance apparel which started shipping in the fourth quarter of last year.
Overall Q2 sales increased by 35% to $113.5 million from $83.9 million last year. Net sales of non-licensed apparel increased 18.8% to $38 million, from $32 million, primarily attributable to increased sales from our Jessica Howard dress division and the February 2008 acquisition of Andrew Marc. Net sales for its new retail segment were approximately $7 million from the Wilsons Outlet Stores, which it acquired in July 2008.
The net loss widened to $3.9 million, or 23 cents a share, from $884,000, or 5 cents, a year earlier, reflecting seasonal losses from the recently-acquired Andrew Marc businesses and Wilsons outlet retail chain.
Gross margins decreased to 25.5% from 26.1% last year, pulled down by increased closeout volume, softness in the women’s suit business, and delaying certain private label programs Licensed apparel margins decreased to 25.5%, from 27.3% in last year’s quarter; non-licensed apparel margins eroded to 22.2% from 24.4% in the previous year’s period. SG&A expenses increased to $32.5 million from $22.1 million, primarily attributable to SG&A expenses associated with the company’s new acquisitions.