G-III Net Sales Spike 43% on Success from Calvin Klein

 

The company’s operating loss decreased to $1.9 million in the first quarter, a strong improvement when compared to the $11.1 million loss G-III faced in the same period last year.  In addition, gross margin was up 2.8%, while net loss shrunk to $1.4 million, or a loss of 7 cents per share, compared to a loss of $6.8 million, or a loss of  41 cents per share in Q1 2009.

According to Morris Goldfarb, CEO of G-III, “We're selling through well with great product in every season across several tiers of distribution and our development efforts are continuing. The business is anchored by Calvin Klein, which has grown at an exceptional rate.” Net sales of wholesale licensed apparel increased to $92.4 million from $60.0 million in 2009, primarily driven by increased net sales of Calvin Klein licensed product, particularly dresses and women's sportswear. Net sales of wholesale non-licensed apparel increased to $40.3 million from $28.8 million in the prior year, which G-III attributes to increases in net sales in the company’s Jessica Howard dress division. Outerwear sales guided a boost in net sales for the company’s retail operations, registering a $2.8 million jump to $30 million, compared to $27.2 million in the prior year's first quarter.

“I should also mention our sports license business is on a very good track,” Goldfarb continued. “The addition of the NFL Sportswear Collection and the expansion in the core outerwear portion of that business should drive significant growth both in top line sales as well as bottom line profit.”

For the second quarter, G-III is expecting returns in net sales in the neighborhood of $160 million as compared to $136 million in 2009, while the company hopes to decrease net loss $200,000 to $1 million, or between a penny and 5 cents per share.