G-III Apparel Group, Ltd. (NasdaqGSM: GIII) today announced
results for the three and nine month periods ended October 31,
2009.
For the three months ended October 31, 2009, net sales increased
by 3.4% to $363.5 million from $351.6 million in the same quarter
of last year. Net income for the three months ended October 31,
2009 increased by 12.2% to $32.3 million, or $1.87 per diluted
share, compared to $28.8 million, or $1.68 per diluted share, in
the prior year’s period.
For the nine months ended October 31, 2009, net sales increased
by 12.3% to $607.0 million from $540.5 million in the same period
last year. Net income for the nine months ended October 31, 2009
increased by 25.5% to $22.7 million, or $1.33 per diluted share,
compared to $18.1 million, or $1.07 per diluted share, in the same
period last year.
Morris Goldfarb, Chairman and Chief Executive Officer, said,
“Over the course of this year, we have worked hard to design and
deliver great product, make our operations even more efficient and
position our business for continued success. Our year to date
results were driven by strong increases in our dress businesses led
by Calvin Klein, as well as the strong start from our new Calvin
Klein sportswear business.”
Mr. Goldfarb continued, “We remain focused on diversifying our
business and have invested to expand our capabilities and
infrastructure for both the dress and sportswear categories, which
we expect to be growth engines for us. We have taken advantage of
our reach across every tier of distribution to seek out areas of
strength in the market. We are taking market share, creating new
opportunities and further developing both our licensed and
company-owned brands.”
“As we look forward, in the short term, we expect a good finish
to the fiscal year and a strong spring season for the first quarter
of next year. Longer term, we believe that we have an excellent
opportunity to accelerate our strategic development, particularly
in regards to our newer categories of business. We believe that
continuing our present path of development will lead to sales and
earnings growth in fiscal 2011 and excellent value creation for our
shareholders,” Mr. Goldfarb concluded.
Outlook
For the full fiscal 2010 year ending January 31, 2010, the
Company has revised its guidance and now expects net sales of
approximately $790 million, compared to its prior guidance of net
sales of approximately $770 million, net income in the range of
$23.0 million to $23.7 million, compared to its prior guidance of
net income in the range of $16.6 million to $18.4 million, and
diluted net income per share between $1.31 and $1.35, compared to
its prior guidance of diluted net income per share between $0.95
and $1.05. The Company is also now forecasting EBITDA for the
fiscal year ending January 31, 2010 to increase approximately 36%
to 40% from fiscal 2009 to a range of approximately $49.8 to $51.3
million compared to its prior guidance of EBITDA in the range of
$40.2 million to $43.2 million. EBITDA should be evaluated in light
of the Company’s financial results prepared in accordance with US
GAAP. A reconciliation of EBITDA to net income in accordance with
US GAAP is included in a table accompanying the condensed financial
statements in this release.
About G-III Apparel Group, Ltd.
G-III is a leading manufacturer and distributor of outerwear,
dresses, sportswear and women’s suits under licensed brands, our
own brands and private label brands. G-III has fashion licenses
under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?,
Jones New York, Jessica Simpson, Nine West, Ellen Tracy, Tommy
Hilfiger, Enyce, Levi’s and Dockers brands and sports licenses with
the National Football League, National Basketball Association,
Major League Baseball, National Hockey League, Touch by Alyssa
Milano and more than 100 U.S. colleges and universities. G-III
sells outerwear and handbags under our own Andrew Marc and Marc New
York brands and has licensed these brands for women’s footwear,
men’s accessories, women’s handbags and men’s cold weather
accessories. Our other owned brands include Marvin Richards, G-III,
Jessica Howard, Eliza J., Black Rivet, Siena Studio, Tannery West,
G-III by Carl Banks and Winlit. G-III works with a diversified
group of retailers in developing product lines to be sold under
their proprietary private labels. G-III also operates 121 retail
stores, of which 118 are outlet stores operated under the Wilsons
Leather name.
Statements concerning G-III’s business outlook or future
economic performance, anticipated revenues, expenses or other
financial items; product introductions and plans and objectives
related thereto; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or
other matters are “forward-looking statements” as that term is
defined under the Federal Securities laws. Forward-looking
statements are subject to risks, uncertainties and factors which
include, but are not limited to, reliance on licensed product,
reliance on foreign manufacturers, risks of doing business abroad,
the current economic and credit crisis, the nature of the apparel
industry, including changing customer demand and tastes, customer
concentration, seasonality, risks of operating a retail business;
customer acceptance of new products, the impact of competitive
products and pricing, dependence on existing management, possible
disruption from acquisitions and general economic conditions, as
well as other risks detailed in G-III’s filings with the Securities
and Exchange Commission. G-III assumes no obligation to update the
information in this release.
G-III APPAREL GROUP, LTD. AND
SUBSIDIARIES
(NASDAQGSM:GIII)
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
10/31/09
10/31/08
10/31/09
10/31/08
Net sales $ 363,540 $ 351,599 $ 607,029 $ 540,458 Cost of
sales 237,912 239,080 409,371 381,520
Gross profit 125,628 112,519 197,658 158,938
Selling general and
administrative expenses
66,738
58,937
150,817
118,625
Depreciation and amortization 1,303 1,900
4,091 5,255 Operating profit 57,587 51,682 42,750 35,058
Interest and financing charges, net 1,891 2,496
3,599 4,161 Income before income taxes 55,696 49,186
39,151 30,897 Income tax expense 23,393 20,350
16,443 12,801 Net income $ 32,303 $ 28,836 $ 22,708 $ 18,096
Basic net income per common share $ 1.93 $ 1.74 $ 1.36 $ 1.10
Diluted net income per common share $ 1.87 $ 1.68 $ 1.33 $
1.07 Weighted average shares outstanding: Basic 16,770
16,526 16,740 16,507 Diluted 17,238 17,160 17,011 16,990
Selected Balance Sheet Data (in thousands):
At
October 31,2009
At
October 31,2008
Cash $ 16,633 $ 9,728 Working Capital 127,535 110,673
Inventory 127,087 131,028 Total Assets 464,417 472,629 Short-term
Revolving Debt 167,815 170,659 Total Stockholders' Equity $ 187,631
$ 193,458
G-III APPAREL GROUP, LTD. AND
SUBSIDIARIES
RECONCILIATION OF EBITDA TO
ACTUAL AND FORECASTED NET INCOME/(LOSS)
(In thousands)
(Unaudited)
Forecasted Twelve
MonthsEndingJanuary 31,
2010
Actual Twelve
MonthsEndedJanuary 31,
2009
EBITDA, as defined $49,800 - $51,300 $ 36,593 Goodwill impairment -
31,202 Trademark impairment - 2,321 Depreciation and amortization
5,400 6,947 Interest and financing charges, net 5,000 5,564 Income
tax expense
16,400 - 17,200 4,588 Net
income/(loss)
$23,000 - $23,700 $
(14,029)
EBITDA is a “non-GAAP financial measure” which represents
earnings before depreciation and amortization, interest and
financing charges, net, and income tax expense. EBITDA is being
presented as a supplemental disclosure because management believes
that it is a common measure of operating performance in the apparel
industry. EBITDA should not be construed as an alternative to net
income as an indicator of the Company’s operating performance, or
as an alternative to cash flows from operating activities as a
measure of the Company’s liquidity, as determined in accordance
with generally accepted accounting principles.
G III Apparel (NASDAQ:GIII)
Historical Stock Chart
From May 2024 to Jun 2024
G III Apparel (NASDAQ:GIII)
Historical Stock Chart
From Jun 2023 to Jun 2024