G-III Fiscal Q2 Profits Grow Four-Fold on 13% Sales Gain

G-III Apparel Group reported net sales of $45.3 million and net income of $2.7 million, or $0.37 per diluted share, for the three-month period ended July 31, 2003 compared to net sales of $40.0 million and net income of $576,000, or $0.08 per diluted share, during the comparable period last year.

For the six-month period ended July 31, 2003, G-III reported net sales of $64.0 million and net income of $91,000, or $0.01 per diluted share, compared to net sales of $52.7 million and a net loss of $3.6 million, or $0.54 per diluted share, during the comparable period last year.

Morris Goldfarb, G-III's Chief Executive Officer, said, “We are very pleased to report a strong second quarter, with strong operating margins. Our profit growth was driven by continued strength in our sports apparel business, which saw both significant new accounts as well as increased penetration. The sportswear component of our sports apparel business attained higher gross margins compared to our other businesses.”

Mr. Goldfarb continued, “We believe, based on feedback from customers with regard to our product assortment and a good order book, we are well positioned for the fall season.”

G-III Apparel Group issued guidance for the fiscal year ending January 31, 2004. For the fiscal year, the Company is forecasting net sales of approximately $220 million and diluted net income per share between $1.10 and $1.15.

              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands, except share and per share amounts)
                              (Unaudited)

                            Three Months Ended     Six Months Ended
                            7/31/03    7/31/02    7/31/03    7/31/02

Net sales                 $   45,299 $   40,022 $   64,011 $   52,713
Cost of sales                 29,618     29,209     43,976     40,997
                          ---------- ---------- ---------- ----------
Gross profit                  15,681     10,813     20,035     11,716
Selling, general and
 administrative expenses      10,844      9,453     19,603     16,967
                          ---------- ---------- ---------- ----------
Operating profit (loss)        4,837      1,360        432     (5,251)
Interest and financing
 charges, net                    230        396        278        521
                          ---------- ---------- ---------- ----------
Income (loss) before
 income taxes                  4,607        964        154     (5,772)

Income tax expense
 (benefit)                     1,889        388         63     (2,179)
                          ---------- ---------- ---------- ----------
Net income (loss)         $    2,718 $      576 $       91 $   (3,593)
                          ========== ========== ========== ==========
Basic net income (loss) 
 per common Share         $     0.40 $     0.09 $     0.01 $    (0.54)
                          ========== ========== ========== ==========
Diluted net income (loss) 
 per common share         $     0.37 $     0.08 $     0.01 $    (0.54)