G-III Apparel Group, Ltd. announced operating results for first quarter of fiscal 2006. For the three-month period ended April 30, 2005, G-III reported net sales of $13.8 million, a 16.4% drop from $16.5 million for the same period last year. Net loss was $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, said, “Our seasonal loss was in line with our expectations and we believe we are well-positioned for a successful fall retailing season. While it remains somewhat premature to quantify our expectations for the second half of the year, I am pleased to note that our order book increase exceeds 15% compared to this same time last year. Further, the strength within our order book is broad-based and cuts across several of our tiers of distribution.”

Mr. Goldfarb continued, “We are especially pleased to continue to make in-roads with several key mid-tier and moderate retailers with both private label and licensed programs. Further, our newer programs are developing well. In addition to the expansion in our business with Kenneth Cole as a result of acquiring the men's license, we are seeing good performance from Izod, Cece Cord, and the Black Rivet men's business.”

Mr. Goldfarb concluded, “We believe that as the retail industry continues to consolidate, our capabilities and broad portfolio of brands has given us a strong position in the outerwear category. We remain committed to leveraging this position by acquiring new licenses and brands, as well as developing our company-owned brands. We believe we are in an excellent position to provide significant value to our shareholders as we move forward.”

For the second quarter ending July 31, 2005, 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 our joint venture interest in a factory located in China.

             G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                             (NASDAQ:GIII)
               CONSOLIDATED STATEMENTS OF OPERATIONS AND
                      SELECTED BALANCE SHEET DATA

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




                                                  First Quarter Ended
                                                        April 30,
                                                  --------------------
                                                       (Unaudited)

                                                     2005      2004*
                                                  ---------- ---------

Net sales                                           $13,767   $16,498

Cost of sales                                        12,852    14,759
                                                  ---------- ---------

Gross profit                                            915     1,739

Selling, general and administrative expenses          9,103    10,134
                                                  ---------- ---------

Operating loss                                       (8,188)   (8,395)
Interest and financing charges, net                       3        73
                                                  ---------- ---------

Loss before income taxes                             (8,191)   (8,468)

Income tax benefit                                   (3,522)   (3,641)
                                                  ---------- ---------

Net loss                                            $(4,669)  $(4,827)
                                                  ========== =========

Net loss per common share:

 Basic and Diluted                                   $(0.64)   $(0.68)