G-III Apparel Group, Ltd. fiscal fourth quarter ended January 31, 2006 net sales increased by 80.0% to $69.1 million from $38.4 million during the same period last year. The Company reported a net loss of $2.8 million, or 23 cents per share, for the three-month period, compared to a net loss of $2.7 million, or 25 cents per share, during the same period last year.

For the twelve-month period ended January 31, 2006, net sales increased by 51.2% to $324.1 million from $214.3 million last year. The Company reported net income of $7.1 million, or 58 cents per diluted share, for the twelve months ended January 31, 2006, compared to net income of $703,000, or six cents per diluted share, last year. The results for this year include an after-tax non-cash compensation charge of approximately $890,000, equal to seven cents per diluted share, related to the vesting of restricted shares of common stock previously granted to key management. The prior year's results include a non-cash charge of $882,000, equal to eight cents per share, associated with the Company's sale of its joint venture interest in a factory in China.

The Company's results of operations for the twelve months ended January 31, 2006 include the results of the Company's Marvin Richards and Winlit divisions from July 11, 2005, the date the Company acquired the stock of Marvin Richards and certain assets from Winlit. The increases in net sales and net income per share during the period were primarily due to including these two new divisions in the Company's results of operations.

Morris Goldfarb, Chairman and Chief Executive Officer, said, “We are very pleased to have finished a strong year with an expanded range of capabilities, and with unprecedented opportunities for growth. The strategic acquisitions we completed during the year have positioned us to create significant businesses in the women's suit and sportswear categories. We expanded our relationship with Phillips-Van Heusen Corporation with the addition of the Calvin Klein women's suit license. In addition, we are excited about our recent signing of Sean John women's sportswear. Combined with the strongest mix of outerwear brands in our history, we are confident that the year ahead will be an exciting one for us.”

Mr. Goldfarb concluded, “It is our mission to continue to develop our business into an all-season diversified apparel company. In doing so, we will be striving to meet the needs of an increasingly demanding consumer and a consolidating retail marketplace, while generating value for our shareholders. Our range of brands and products and our ability to serve any tier of distribution provide us with a powerful competitive position that we intend to exploit over the coming years.”

Also today, G-III Apparel Group issued guidance for the fiscal year ending January 31, 2007. For the fiscal year ending January 31, 2007, the Company is forecasting net sales of approximately $400 million and diluted net income per share between $0.58 and $0.62. This compares to a fiscal 2006 diluted net income per share of $0.58.

The Company is projecting EBITDA to increase 25% to 30%, or to approximately $25 to $26 million, up from $20.1 million in fiscal 2006. EBITDA for fiscal 2006 includes the impact of a $1.6 million non-cash compensation charge related to the vesting of restricted shares of common stock previously granted to key management. EBITDA results should be evaluated in light of the Company's financial results prepared in accordance with GAAP. A table reconciling EBITDA to net income in accordance with GAAP is included in a table accompanying the condensed financial statements in this release.

When comparing guidance for fiscal 2007 to results for fiscal 2006, the Company noted that it completed two acquisitions in July 2005. As a result, the Company's full year results for fiscal 2006 exclude seasonal losses that were incurred by the acquired companies in the first half of fiscal 2006. Results for fiscal 2007 will include the full year of operations of the acquired companies, as well as a full year of interest expense and depreciation and amortization expense relating to the acquisitions.

The Company is forecasting net sales of approximately $15 million for its first fiscal quarter ending April 30, 2006 and a net loss per share between $0.70 and $0.74 as compared to a net loss per share of $0.43 in last year's first fiscal quarter. The first quarter historically results in seasonal losses. The higher projected first quarter loss this year is due primarily to the inclusion of the results of the companies we acquired in July 2005, as well as higher interest expenses and depreciation and amortization costs relating to the acquisitions.

              G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
                             (NASDAQ:GIII - News)
                 CONSOLIDATED STATEMENTS OF OPERATIONS

          (in thousands, except share and per share amounts)
                              (Unaudited)

                             Three Months Ended    Twelve Months Ended
                              1/31/06    1/31/05   1/31/06    1/31/05
                             --------- ---------- ---------- ---------
Net sales                     $69,131    $38,400   $324,072   $214,278
Cost of sales                  53,067     32,064    239,226    161,534
                             ---------   --------  ---------  --------
Gross profit                   16,064      6,336     84,846     52,744
Selling, general and
 administrative  expenses      17,782     10,390     64,763     47,452
Depreciation and amortization   1,066        349      3,125      1,344
Costs associated with write off
 of joint venture                 ---        ---        ---        882
                             ---------   --------  ---------  --------
Operating profit (loss)        (2,784)    (4,403)    16,958      3,066
Interest and financing charges, 
 net                            1,578        265      4,349      1,086
                             ---------   --------  ---------  --------
Income (loss) before income 
 taxes                         (4,362)    (4,668)    12,609      1,980
Income tax expense (benefit)   (1,611)    (1,961)     5,517      1,277
                             ---------   --------  ---------  --------
Net income (loss)             $(2,751)   $(2,707)  $  7,092   $    703
                             =========   ========  =========  ========
Income (loss) per
 common share:
   Basic                      $ (0.23)   $ (0.25)  $   0.62   $   0.07
                             =========   ========  =========  ========
   Diluted                    $ (0.23)   $ (0.25)  $   0.58   $   0.06
                             =========   ========  =========  ========

Weighted average shares
 outstanding:
    Basic                  12,112,000 10,883,000 11,509,000 10,773,000
    Diluted                12,112,000 10,883,000 12,236,000 11,292,000