G-III Apparel Group, Ltd. reported sales during the fourth quarter increased by 9.0 percent to $294.3 million from $270.2 million a year ago. Earnings slid 59.3 percent to $5.0 million, or 25 cents a share.
For the fiscal year ended Jan. 31, G-III reported net sales increased by 15.8 percent to $1.23 billion from $1.06 billion last year. Net income per diluted share was $2.46 compared to $2.88 last year. EBITDA in the year decreased 10 percent to $92.4 million from $102.7 million in the prior fiscal year.
Morris Goldfarb, G-III's chairman and chief executive officer, said, “Although we achieved record sales in fiscal 2012, the record breaking warm weather was a major factor in our disappointing fourth quarter performance. Having managed through fiscal 2012 gives us comfort for a more successful fiscal 2013.”
Goldfarb continued, “Our opportunities across several brands and categories remain quite compelling. We are very encouraged by the ongoing growth of our dress business and our league sports business, driven by our expanded NFL license. Both dresses and sports are showing a strong increase in their respective order books. Calvin Klein handbags and luggage are both on track to show good growth and have a solid second year. In addition, our new Kensie sportswear is off to a very good start. We are also looking forward to the launch of Jessica Simpson outerwear for this upcoming Fall season. We believe that our core strengths and new business initiatives will result in top and bottom line growth in fiscal 2013. Today we are the premier branded outerwear and dress supplier to retailers across the country. It is our goal to also be the premier branded supplier of sportswear, handbags and luggage.”
Outlook
Also today, G-III Apparel Group issued guidance for the fiscal year ending Jan. 31, 2013. For the fiscal year ending January 31, 2013, the Company is forecasting net sales of approximately $1.33 billion and net income between $54.0 million and $56.0 million, or between $2.62 and $2.72 per diluted share. The company is projecting EBITDA for fiscal 2013 to increase approximately 11 percent to 15 percent from approximately $102.5 million to $106.0 million.
The company is forecasting net sales of approximately $215 million for its first fiscal quarter ending April 30, 2012 and a net loss between $400,000 and $1.2 million, or between $0.02 and $0.06 per share, compared to net sales of $196.9 million and a net loss of $520,000, or $0.03 per share, in last year’s first fiscal quarter.
G-III makes outerwear, dresses, sportswear and women's suits, as well as handbags and luggage, under licensed brands, our its brands and private label brands. G-III sells outerwear and dresses under its own Andrew Marc, Marc New York and Marc Moto brands and has licensed these brands to select third parties in certain product categories. G-III has fashion licenses under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Vince Camuto, Nine West, Ellen Tracy, Tommy Hilfiger, Kensie, Mac & Jac, Levi's and Dockers brands and sports 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 Jessica Howard, Eliza J, Black Rivet, G-III, G-III Sports by Carl Banks and Winlit. G-III also operates outlet stores under our Wilsons Leather and Andrew Marc names.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------- ------------------------
1/31/12 1/31/11 1/31/12 1/31/11
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Net sales $ 294,346 $ 270,164 $ 1,231,201 $ 1,063,404
Cost of sales 210,931 182,857 860,485 712,359
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Gross profit 83,415 87,307 370,716 351,045
Selling, general and administrative expenses 72,310 64,714 277,019 248,380
Depreciation and amortization 2,222 1,667 7,473 5,733
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Operating profit 8,883 20,926 86,224 96,932
Equity loss in joint venture 460 - 1,271 -
Interest and financing charges, net 1,705 1,325 5,713 4,027
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Income before income taxes 6,718 19,601 79,240 92,905
Income tax expense 1,699 7,268 29,620 36,223
------- ------- --------- ---------
Net income $ 5,019 $ 12,333 $ 49,620 $ 56,682
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Basic net income per common share $ 0.25 $ 0.63 $ 2.51 $ 2.96
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Diluted net income per common share $ 0.25 $ 0.62 $ 2.46 $ 2.88
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Weighted average shares outstanding:
Basic 19,769 19,437 19,796 19,175
Diluted 20,106 19,959 20,192 19,705
