G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced
operating results for the third quarter of fiscal 2012 that ended
October 31, 2011.
The Company reported that, for the three months ended October
31, 2011, net sales increased to $510.0 million from $450.0 million
in the third quarter last year.
Net income for the third quarter of fiscal 2012 grew to $43.6
million from $42.7 million in the prior year’s quarter. Net income
per diluted share of $2.16 for the third quarter of fiscal 2012 was
the same as in the year-ago quarter.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer,
said, “We achieved our sales objectives for the quarter, but found
it necessary to utilize promotional strategies given the continued
challenging market and weather conditions. In addition, we
experienced higher product costs than last year. Our lower gross
margin percentage in the third quarter reflected our higher costs
and the promotional environment. We expect these trends to continue
to impact us in the fourth quarter.”
Mr. Goldfarb concluded, “We continue to be excited about a
variety of growth initiatives that are expected to positively
impact us next year, including: the expansion of our Calvin Klein
business, the further development of our handbag and luggage
platform, the addition of Kensie sportswear, the ongoing
development of our Andrew Marc brand, the increase in the product
categories we will be manufacturing for the Jessica Simpson and
Vince Camuto brands, and the expanded license with the NFL that
takes effect in April 2012.”
Outlook
The Company today revised its prior guidance for the full fiscal
year ending January 31, 2012. The Company continues to forecast net
sales of approximately $1.25 billion and is now forecasting net
income of between $50.8 million and $52 .8 million, or between
$2.50 and $2.60 per diluted share, compared to its previous
guidance of net income of between $62.5 million and $64.5 million,
or between $3.05 and $3.15 per diluted share. The Company is now
projecting EBITDA for fiscal 2012 of approximately $96.0 million to
$99.0 million compared to its previous guidance of EBITDA of
approximately $117 million to $121 million. EBITDA should be
evaluated in light of the Company’s financial results prepared in
accordance with U.S. GAAP. A reconciliation of EBITDA to net income
in accordance with U.S. 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, as well as handbags and
luggage, under licensed brands, our own brands and private label
brands. G-III sells outerwear and dresses under our own Andrew
Marc, Marc New York and Marc Moto brands and has licensed these
brands to select third parties in certain product categories. G-III
has fashion licenses under the Calvin Klein, Sean John, Kenneth
Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Vince
Camuto, Nine West, Ellen Tracy, Tommy Hilfiger, Kensie, 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. Our other owned brands include
Jessica Howard, Eliza J, Black Rivet, G-III, G-III Sports by Carl
Banks and Winlit. G-III also operates outlet stores under our
Wilsons Leather and Andrew Marc names and is a party to a joint
venture that operates outlet stores under the Vince Camuto
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 environment, 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
(NASDAQGS:GIII)
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
10/31/11
10/31/10
10/31/11
10/31/10
Net sales $ 510,009 $ 450,002 $ 936,855 $ 793,239 Cost of
sales 347,734 296,055 649,554 529,502
Gross profit 162,275 153,947 287,301 263,737
Selling general and administrative
expenses
86,958
80,140
204,708
183,665
Depreciation and amortization 1,875 1,508
5,251 4,065 Operating profit 73,442 72,299 77,342 76,007
Equity in loss of joint venture 337 - 812 - Interest and financing
charges, net 2,297 1,706 4,009 2,702
Income before income taxes 70,808 70,593 72,521 73,305 Income tax
expense 27,253 27,871 27,921 28,955
Net income $ 43,555 $ 42,722 $ 44,600 $ 44,350 Basic
net income per common share $ 2.19 $ 2.22 $ 2.25 $ 2.32
Diluted net income per common share $ 2.16 $ 2.16 $ 2.21 $ 2.26
Weighted average shares outstanding: Basic 19,845 19,227
19,804 19,087 Diluted 20,172 19,764 20,209 19,606
Selected Balance Sheet Data (in thousands):
At October
31,2011
At October
31,2010
Cash $ 16,083 $ 16,586 Working Capital 280,373 221,400
Inventory 273,161 208,507 Total Assets 769,461 620,909 Short-term
Revolving Debt 245,058 166,739 Total Stockholders' Equity 351,922
285,660
G-III APPAREL GROUP, LTD. AND
SUBSIDIARIES
RECONCILIATION OF EBITDA TO ACTUAL AND
FORECASTED NET INCOME
(In thousands)
(Unaudited)
Forecasted Twelve MonthsEnding
January 31, 2012
Actual Twelve MonthsEndedJanuary 31, 2011
EBITDA, as defined $96,000 - $99,000 $ 102,665 Depreciation and
amortization 7,600 5,733 Interest and financing charges, net 5,800
4,027 Income tax expense
31,800 -32,800
36,223 Net income
$ 50,800 -
$52,800 $ 56,682
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