G-III Apparel Group, Ltd. said net sales for the first quarter ended April 30 increased by 53.8% to $115.9 million from $75.4 million in the year-ago period. The company’s net loss for the quarter was 41 cents per share compared to a net loss per share of 42 cents in the prior comparable period.


The company noted that improved operating profitability in its dress and women’s sportswear businesses was offset by the seasonal losses associated with the company’s Wilsons retail outlet business, which are not included in the year-ago results.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We are pleased with the better than expected start for the year, particularly given the challenging market environment. We remain excited about the performance of our dress and sportswear businesses, with each continuing to demonstrate strong sell-throughs in their respective departments.”


Mr. Goldfarb continued, “We have cut costs, controlled our inventory and positioned our business to perform well. This is particularly true in our Wilsons business, where we are working hard to create a more efficient and effective merchandising capability. While our expectations for the current year with respect to Wilsons are modest, we believe we are on a path to demonstrate significant value in this business. We have also continued to position and leverage our Andrew Marc branded business and are pleased to have added new licenses for men’s cold weather accessories and women’s handbags to our existing licenses for women’s shoes and men’s accessories.”


Mr. Goldfarb concluded, “Given the increased value offered in our merchandise mix, the appropriateness of our inventory level and the strength of our branded portfolio, our expectations are good for both sales and margin for the remainder of the year.”


Outlook


The company is forecasting net sales of approximately $135 million for its second fiscal quarter ending July 31, 2009, compared to $113.5 million in the prior year’s second fiscal quarter. The company is also forecasting a net loss of $4.8 million to $5.4 million, or between 28 cents and 32 cents per share, compared to a net loss of $3.9 million, or 23 cents per share, in last year’s second quarter.


The company noted that the increased net loss expected during the quarter is due primarily to the incremental loss realized as a result of the seasonal nature of the Wilsons retail outlet business – which was owned by the company for three weeks in the second quarter last year – along with a continued shift in outerwear sales to more closely match the retail selling season.

 







































































































































































































































G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND


SELECTED BALANCE SHEET DATA


 


(In thousands, except per share amounts)

 
  First Quarter Ended April 30,
(Unaudited)
 
2009 2008
 
Net sales $ 115,933 $ 75,396
 
Cost of sales   84,718     57,859  
 
Gross profit 31,215 17,537
 
Selling, general and administrative expenses 40,883 27,165
 
Depreciation and amortization   1,404     1,580  
 
Operating loss (11,072 ) (11,208 )
 
Interest and financing charges, net   685     566  
 
Loss before income taxes (11,757 ) (11,774 )
 
Income tax benefit   (4,938 )   (4,886 )
 
Net loss $ (6,819 ) $ (6,888 )
 
Net loss per common share:
 
Basic and Diluted $ (0.41 ) $ (0.42 )
 
Weighted average shares outstanding (Basic and Diluted) 16,696 16,482