G-III Apparel Group, Ltd. reported net sales of $13.8 million for the first quarter ended April 30, a 16.4% drop from $16.5 million for the same period last year. Gross margin fell 390 basis points to 6.6% of sales, from 10.5% in the prior year’s quarter. SG&A rose 470 points to 66.1% of sales from 61.4% last year. Despite the decrease in gross margin and the increase in SG&A expenses, G-III did manage to slightly lower net loss to $4.7 million, or 64 cents per share, compared to a net loss of $4.8 million, or 68 cents per share, during the comparable period last year.

Morris Goldfarb, G-III's chief executive officer, noted that the seasonal loss was in line with expectations and that despite the dismal quarter, the company believes it is well-positioned for a successful fall retailing season. Goldfarb also noted that the company’s order book increased more than 15% compared to the same time last year.

For the second quarter, the company is forecasting net sales of approximately $50.0 million and a net loss per share between 5 cents and 8 cents. In last year's second quarter, net sales were $44.0 million and net loss per share was 23 cents, which includes a non-cash charge of $882,000, equal to 12 cents per share, associated with the sale of the company’s joint venture interest in a factory located in China.