— Net Sales and Net Income Per Share for the
First Quarter Exceed Expectations —
— Net Sales of $519.9 Million for the First
Quarter vs. $405.1 Million Last Year —
— Net Income Per Diluted Share of $0.53 for
the First Quarter vs. a Net Loss Per Share of ($0.82) Last Year
—
— Ends First Quarter With Cash and Credit
Facility Availability of Approximately $860 Million —
— Provides Guidance for Fiscal Year 2022
—
G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced
operating results for the first quarter of fiscal 2022, ended April
30, 2021.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer,
said, “We were pleased with our strong outperformance in the first
quarter of this fiscal year. With each passing week, sales for
broader lifestyle apparel, such as sportswear, wear-to-work attire
and dresses, are accelerating and our overall business in North
America is getting stronger. We believe these trends provide a good
indication for the remainder of the year and give us confidence
that we and our industry are well on our way to recovery. We
believe we are well positioned to capitalize on consumer demand as
the year progresses and are optimistic about this fiscal year.”
Mr. Goldfarb concluded, “Reflecting upon the last year and the
difficult challenges posed by the global pandemic, it is impressive
to see how effectively we navigated through this period,
demonstrating the power and diversification of G-III’s business to
adapt and succeed in any environment. As the world reopens, we are
in a strong financial position, which we believe will allow us to
fund our growth domestically and internationally and enable us to
take advantage of opportunities that arise.”
Net sales for the first quarter ended April 30, 2021 increased
28.3% to $519.9 million from $405.1 million in the prior year’s
quarter. The Company reported net income for the first quarter of
$26.3 million, or $0.53 per diluted share, compared to a net loss
of $39.3 million, or $(0.82) per share, in the prior year’s
quarter.
The Company completed the restructuring of its retail operations
segment and has closed the Wilsons Leather and G.H. Bass stores.
Included in the Company’s results for the first quarter of last
year are net losses from the Wilsons Leather and G.H. Bass store
operations of $15.0 million, or $(0.31) per diluted share. These
results reflect the 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.
Outlook
G-III Apparel Group today issued guidance for the fiscal year
ending January 31, 2022. As the developments associated with the
COVID-19 pandemic continue to be fluid, the Company’s fiscal year
2022 guidance does not contemplate any reimposition of
government-mandated store closures or other governmental
restrictions that were previously imposed as a result of the
COVID-19 pandemic which could have a material impact on our net
sales, results of operations and supply chain during fiscal 2022.
The Company’s fiscal 2022 results could differ materially from its
current outlook as a result of the occurrence of any of these or
other uncontemplated events.
For fiscal 2022, the Company is forecasting net sales of
approximately $2.57 billion which compares to $2.06 billion last
year. Last fiscal year’s net sales included $91.8 million from the
Wilsons Leather and G.H. Bass stores. Net income for fiscal 2022 is
expected to be between $125 million and $135 million, or between
$2.60 and $2.70 per diluted share. This compares to net income of
$23.5 million, or $0.48 per diluted share, last year. The results
last year included a net loss per diluted share of $(1.14)
associated with the Wilsons Leather and G.H. Bass store
operations.
For the second quarter of the current 2022 fiscal year, we
expect net sales of approximately $460 million, which compares to
$297.2 million in the same period last year. Last year’s net sales
for the second quarter included $19.7 million from the Wilsons
Leather and G.H. Bass stores. Net income for the second quarter of
fiscal year 2022 is expected to be in the range of $0.03 and $0.13
per diluted share. This compares to a net loss of $(0.31) per share
in last year’s second quarter, which included a net loss per share
of $(0.53) 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
OPERATIONS
(In thousands, except per share
amounts)
Three Months Ended April
30,
2021
2020
(Unaudited)
Net sales
$
519,910
$
405,131
Cost of goods sold
324,441
280,730
Gross profit
195,469
124,401
Selling, general and administrative
expenses
141,603
154,620
Depreciation and amortization
7,044
9,867
Loss on lease modifications
—
3,187
Operating profit (loss)
46,822
(43,273
)
Other income (loss)
1,820
(2,056
)
Interest and financing charges, net
(12,004
)
(10,379
)
Income (loss) before income taxes
36,638
(55,708
)
Income tax expense (benefit)
10,259
(16,413
)
Net income (loss)
26,379
(39,295
)
Less: Income attributable to
noncontrolling interests
58
—
Net income (loss) attributable to G-III
Apparel Group, Ltd.
$
26,321
$
(39,295
)
Net income (loss) attributable to G-III
Apparel Group, Ltd. per common share:
Basic
$
0.54
$
(0.82
)
Diluted
$
0.53
$
(0.82
)
Weighted average shares outstanding:
Basic
48,377
48,025
Diluted
49,510
48,025
Selected Balance Sheet Data (in
thousands):
At April 30,
2021
2020
(Unaudited)
Cash and cash equivalents
$
396,311
$
616,183
Working capital
976,365
1,207,520
Inventories
346,668
500,410
Total assets
2,398,720
2,798,961
Long-term debt
514,889
901,194
Operating lease liabilities
198,874
294,955
Total stockholders' equity
1,357,876
1,246,234
SELECT STATEMENT OF OPERATIONS
DATA OF WILSONS LEATHER AND G.H. BASS STORES
(In thousands, except per share
amounts)
Three Months Ended
Fiscal Year Ended
April 30,
July 31,
October 31,
January 31,
January 31,
2020
2020
2020
2021
2021
(Unaudited)
Net sales
$
19,293
$
19,667
$
38,175
$
14,713
$
91,848
Operating loss
(21,237
)
(35,128
)
(17,408
)
(10,881
)
(84,654
)
Operating loss before income taxes
(21,237
)
(35,128
)
(17,408
)
(10,881
)
(84,654
)
Operating loss, net of taxes
$
(14,980
)
$
(25,643
)
$
(12,005
)
$
(8,615
)
$
(55,739
)
Operating loss per common share:
Basic
$
(0.31
)
$
(0.53
)
$
(0.25
)
$
(0.18
)
$
(1.16
)
Diluted
$
(0.31
)
$
(0.53
)
$
(0.25
)
$
(0.17
)
$
(1.14
)
Three Months Ended
Fiscal Year Ended
April 30,
July 31,
October 31,
January 31,
January 31,
2019
2019
2019
2020
2020
(Unaudited)
Net sales
$
52,589
$
53,596
$
59,848
$
85,478
$
251,511
Operating loss
(10,264
)
(8,585
)
(5,588
)
(17,459
)
(41,896
)
Operating loss before income taxes
(10,264
)
(8,585
)
(5,588
)
(17,459
)
(41,896
)
Operating loss, net of taxes
$
(5,458
)
$
(6,267
)
$
(4,068
)
$
(15,903
)
$
(31,696
)
Operating loss per common share:
Basic
$
(0.11
)
$
(0.13
)
$
(0.09
)
$
(0.33
)
$
(0.66
)
Diluted
$
(0.11
)
$
(0.13
)
$
(0.08
)
$
(0.33
)
$
(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 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 now that the restructuring has been
completed. No interest expense has been allocated in calculating
these operating results. The tax rates used assume the same overall
effective rate that is reflected in the Company’s consolidated
financial statements for fiscal 2022 and fiscal 2021. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210607005042/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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