G-III Apparel Group reported net sales for the fiscal 2004 first quarter jumped 47.4% to $18.7 million, compared to $12.7 million in the year-ago period. The company narrowed its net loss for the period ended April 30th to $2.6 million, or ($0.38) per share, versus a net loss of $4.2 million, or ($0.62) per share in the 2003 fiscal first quarter.

Gross profit margins surged 1620 basis points to 23.3% from just 7.1% in the year-ago quarter. The company benefited from the closure in Q4 of its former Indonesian facility, where they saw larger losses in last year’s Q1. Margin improved due to lower clearance sales.

Inventory levels were reduced 23% versus the end of fiscal Q1 2003 to $31.2 million at the end of the last fiscal quarter.

The Indo move is expected to benefit results for the balance of the fiscal year. G-III is forecasting fiscal Q2 sales to grow 10% to $44.0 million and show diluted EPS of 10 to 12 cents versus 8 cents in the fiscal second quarter of last year.


>>> The company also obviously benefited from the healthy licensed apparel business, especially in higher end goods…