Stronger Sports Licensed Apparel drove fourth quarter sales and gross margin at G-III Apparel Group while losses widened for the quarter ended January 31, 2003.
Fourth quarter net sales increased 55.1% to $47.7 million and the company reported a net loss of $4.5 million, or ($0.66) per share, for the three-month period, compared to a net loss of $3.7 million, or ($0.55) per share, during the comparable period last year.
Net sales for the year were $202.7 million compared to $201.4 million last year, but net income shrunk 84% to $382,000, or $0.05 per diluted share compared to net income of $2.4 million, or $0.32 per diluted share, last year.
Gross margin increased to 20.2% from 9.7% in the fourth quarter of last year due to better inventory management and higher sales of regular priced merchandise. Full year gross margin improved to 24.3% from 21.5% in the prior year.
Inventory decreased by 16.7% to $30.9 million.
For the coming year G-III said the Sports Apparel business is expected to be the most significant driver of revenue growth, particularly in higher-margin Hardwood Classics and Cooperstown segments.
For the first quarter ending April 30, 2003, G-III is estimating a loss per share between 40 cents and 44 cents versus 62 cents per share loss in the year-ago period.
