— GAAP Net Income Per Diluted Share for
Fiscal 2021 of $0.48 is Inclusive of $(1.14) Per Diluted Share of
Losses Related to Wilsons Leather and G.H. Bass Store Operations
—
— GAAP Net Income Per Diluted Share for the
Fourth Quarter of $0.30 is Inclusive of $(0.17) Per Diluted Share
of Losses Related to Wilsons Leather and G.H. Bass Store Operations
—
— Completed Closing of Wilsons Leather and
G.H. Bass Stores in Fiscal 2021 —
— Cash and Credit Facility Availability of
Approximately $825 Million at Fiscal Year End 2021 —
— Provides Guidance for First Quarter of
Fiscal Year 2022 —
G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced
operating results for the fourth quarter and full fiscal 2021 year
ended January 31, 2021.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer,
said, “The resiliency and flexibility demonstrated by our high
performing teams has been nothing short of amazing. Our
entrepreneurial culture, with a merchant led focus, proved to be
invaluable as we responded to the casual trend by designing the
right merchandise for our retail partners. We further elevated our
position as a key supplier of choice for a broad range of apparel
and accessories. We ended fiscal year 2021 with continued
improvement in our wholesale operations and completed the
restructuring of our retail operations.”
Mr. Goldfarb concluded, “We enter fiscal year 2022 in a good
inventory position, which is weighted toward casual product that
remains in high demand. As the year progresses, we believe there
will be an increasing desire for dressier apparel and accessories.
We are working closely with our retail and vendor partners to be in
a position to bring these products to market in a timely manner.
Our strong financial position and liquidity enables us to continue
to fund our operations, as well as consider acquisitions.”
Net sales for the fiscal year ended January 31, 2021 decreased
35.0% to $2.06 billion from $3.16 billion in the prior year. The
Company reported GAAP net income for the fiscal year of $23.5
million, or $0.48 per diluted share, compared to $143.8 million, or
$2.94 per diluted share, in the prior year.
The Company has completed the restructuring of its retail
operations segment and has permanently closed the Wilsons Leather
and G.H. Bass stores. Included in the Company’s results for the
fiscal year ended January 31, 2021, are net losses from the Wilsons
Leather and G.H. Bass store operations of $55.7 million, or $(1.14)
per diluted share, compared to $31.7 million, or $(0.65) per
diluted share, in the prior year’s comparable period. The results
for each period reflect direct store operations including
impairment charges, but do not include any allocated corporate
overhead charges, shared administrative expenses or shared
distribution expenses. These operating results for Wilsons Leather
and G.H. Bass are presented solely to provide the historical
operating results of the portion of the Company’s retail operations
segment that was closed and are not intended to be used to develop
expectations for future results of the Company or to indicate any
future level of profitability of the Company.
For the fourth quarter ended January 31, 2021, net sales
decreased 30.3% to $526.2 million from $754.6 million in the fourth
quarter last year. The Company reported GAAP net income for the
fourth quarter of $14.6 million, or $0.30 per diluted share,
compared to $25.3 million, or $0.52 per diluted share, in the
fourth quarter last year.
Included in the Company’s fourth quarter results are net losses
from the Wilsons Leather and G.H. Bass store operations of $8.6
million, or $(0.17) per diluted share, compared to $15.9 million,
or $(0.33) per diluted share, in the prior year’s comparable
period.
Outlook
As there continues to be uncertainty associated with the impact
of the COVID-19 pandemic on our results, the Company is only
providing guidance for the first quarter of fiscal year 2022,
ending on April 30, 2021.
For the first quarter of fiscal year 2022, we expect net sales
of approximately $460.0 million, which compares to $405.1 million
in the same period last year. Last year’s net sales for the first
quarter include $19.3 million for the Wilsons Leather and G.H. Bass
stores. GAAP net income for the first quarter of fiscal year 2022,
is expected to be in the range of $0.05 and $0.15 per diluted
share. This compares to a GAAP net loss of $(0.82) per share in
last year’s first quarter, which includes a net loss per share of
$(0.33) associated with the Wilsons Leather and G.H. Bass store
operations.
About G-III Apparel Group,
Ltd.
G-III designs, sources and markets apparel and accessories under
owned, licensed and private label brands. G-III’s substantial
portfolio of more than 30 licensed and proprietary brands is
anchored by five global power brands: DKNY, Donna Karan, Calvin
Klein, Tommy Hilfiger and Karl Lagerfeld Paris. G-III’s owned
brands include DKNY, Donna Karan, Vilebrequin, G.H. Bass, Eliza J,
Jessica Howard, Andrew Marc and Marc New York. G-III has fashion
licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld
Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and
Dockers brands. Through its team sports business, G-III has
licenses with the National Football League, National Basketball
Association, Major League Baseball, National Hockey League and over
150 U.S. colleges and universities. G-III also distributes directly
to consumers through its DKNY, Karl Lagerfeld Paris and Vilebrequin
stores and its digital channels for the DKNY, Donna Karan,
Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and
G.H. Bass brands.
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, risks related to the COVID-19
outbreak, reliance on licensed product, reliance on foreign
manufacturers, risks of doing business abroad, the current economic
and credit environment, risks related to our indebtedness, the
nature of the apparel industry, including changing customer demand
and tastes, customer concentration, seasonality, risks of operating
a retail business, risks related to G-III’s ability to reduce the
losses incurred in its retail operations, customer acceptance of
new products, the impact of competitive products and pricing,
dependence on existing management, possible disruption from
acquisitions, the impact on G-III’s business of the imposition of
tariffs by the United States government and business 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 (Nasdaq: GIII) CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended January
31,
Year Ended January 31,
2021
2020
2021
2020
(Unaudited)
(Unaudited)
Net sales
$
526,242
$
754,617
$
2,055,146
$
3,160,464
Cost of goods sold
338,649
503,529
1,310,704
2,042,524
Gross profit
187,593
251,088
744,442
1,117,940
Selling, general and administrative
expenses
150,755
187,293
605,102
832,180
Depreciation and amortization
8,880
9,772
38,625
38,735
Asset impairments, net of lease
terminations
501
21,717
17,873
19,371
Operating profit
27,457
32,306
82,842
227,654
Other income (loss)
3,126
(427
)
3,238
(1,149
)
Interest and financing charges, net
(12,117
)
(10,784
)
(50,354
)
(44,407
)
Income before income taxes
18,466
21,095
35,726
182,098
Income tax expense (benefit)
3,846
(4,193
)
12,203
38,261
Net income
$
14,620
$
25,288
$
23,523
$
143,837
Less: Loss attributable to noncontrolling
interests
(22
)
—
(22
)
—
Net income attributable to G-III Apparel
Group, Ltd.
$
14,642
$
25,288
$
23,545
$
143,837
Net income attributable to G-III Apparel
Group, Ltd. per common share:
Basic
$
0.30
$
0.53
$
0.49
$
2.98
Diluted
$
0.30
$
0.52
$
0.48
$
2.94
Weighted average shares outstanding:
Basic
48,367
47,841
48,242
48,209
Diluted
49,299
48,484
48,781
48,895
Selected Balance Sheet Data (in
thousands):
At January 31,
2021
2020
(Unaudited)
Cash and cash equivalents
$
351,934
$
197,372
Working capital
925,449
754,728
Inventories
416,503
551,918
Total assets
2,426,394
2,565,137
Long-term debt
512,352
397,467
Operating lease liabilities
205,228
312,206
Total G-III Apparel Group, Ltd.
Stockholders' Equity
1,336,241
1,290,672
SELECT STATEMENT OF OPERATIONS
DATA OF WILSONS LEATHER AND G.H. BASS STORES (In thousands,
except per share amounts)
Three Months Ended January
31,
Twelve Months Ended January
31,
2021
2020
2021
2020
(Unaudited)
Net sales
$
14,713
$
85,478
$
91,848
$
251,511
Operating loss (1)
(10,881
)
(17,459
)
(84,654
)
(41,896
)
Operating loss before income taxes
(10,881
)
(17,459
)
(84,654
)
(41,896
)
Operating loss, net of taxes
$
(8,615
)
$
(15,903
)
$
(55,739
)
$
(31,696
)
Operating loss per common share:
Basic
$
(0.18
)
$
(0.33
)
$
(1.16
)
$
(0.66
)
Diluted
$
(0.17
)
$
(0.33
)
$
(1.14
)
$
(0.65
)
The table above reflects the four wall operations of Wilsons
Leather and G.H. Bass stores, which are included in the
consolidated operating results of the Company. As part of our
retail restructuring, we closed all of these stores. The results
for this portion of our retail operations segment include
impairment charges, but do not include any allocated corporate
overhead charges, shared administrative expenses or shared
distribution center expenses. Corporate overhead charges, shared
administrative expenses and shared distribution center expenses
have been excluded as these expenses will continue to be incurred
by the Company notwithstanding the restructuring of its retail
operations segment. The Company continues to evaluate to what
extent these expenses might be able to be reduced upon the
completion of the restructuring. No interest expense has been
allocated in calculating these operating results. The tax rate used
assumes the same overall effective rate that is reflected in the
Company’s consolidated financial statements for fiscal 2021. For
fiscal 2020, the tax rate used excludes certain adjustments related
to foreign tax rate changes in fiscal 2020. The table above also
reflects the results of operations of the Company’s four Calvin
Klein Performance stores that were closed as part of the retail
restructuring. The operating results of the four Calvin Klein
Performance stores are also included in the consolidated operating
results of the Company.
(1)
Includes $21.2 million, $16.9 million and
$18.9 million of impairment charges, net of lease terminations,
recorded during the quarter ended January 31, 2020 and twelve month
periods ended January 31, 2021 and 2020, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210318005191/en/
G-III Apparel Group, Ltd.
Company Contact: Priya Trivedi VP of Investor Relations
and Treasurer (646) 473-5228
Investor Relations Contact: Tom Filandro ICR, Inc. (646) 277-1235
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