G-III Apparel Group, Ltd. said net sales for the third quarter increased 29.6% to $351.6 million from $271.2 million in the comp quarter last year. Net income for the three months was $28.8 million, or $1.68 per diluted share, compared to $23.8 million, or $1.41 per diluted share, in the prior years period.
For the nine months ended Oct. 31, 2008, net sales increased by 38.5% to $540.5 million from $390.2 million in the same period last year. Net income for the nine months ended Oct. 31, 2008 was $18.1 million, or $1.07 per diluted share, compared to $16.4 million, or 99 cents per diluted share, in the same period last year.
“Our third quarter results represent a solid performance given the conditions in the market,” said Morris Goldfarb, chairman and CEO. “Calvin Klein, which is our largest and fastest growing business, continues to exceed plan and is particularly well suited to address the current market environment with a strong fashion identity and an excellent price-value proposition for consumers.”
Goldfarb said retailers have been slower to reorder and that he expects to see a higher level of promotional activity in the fourth quarter, particularly in the luxury tier. Additionally, traffic and comparable store sales results are lower than G-III had planned in its recently acquired Wilsons outlet business. “Accordingly, we are revising our full years guidance down,” Goldfarb said. “We believe our strategy of diversifying our product offerings, broadening our distribution channels and offering a wide variety of brands to consumers will help us weather the difficult retail and consumer environment we are currently facing.”
