<PAGE>

<PAGE>

                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


        [ X ]   QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

        For the Quarterly period ended               October 31, 1995
                                      -----------------------------------------

                                       OR

        [ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
        For the transition period from___________________ to___________________

                                                       0-18183
        Commission File Number_________________________________________________

                           G-III APPAREL GROUP, LTD.
          (Exact of name of registrant as specified in its character)


                   Delaware                                41-1590959
        -------------------------------              --------------------
        (State or other jurisdiction of                (I.R.S. Employer
         incorporation or organization)              Identification No.)

             345 West 37th Street, New York, New York         10018
  ----------------------------------------------------------------------------
             (Address of Principal Executive Office)        (Zip Code)

                                 (212) 629-8830
                  -------------------------------------------
              (Registrant's telephone number, including area code)

- --------------------------------------------------------------------------------

              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
         required to be filed by Section 13 or 15 (d) of the Securities Exchange
         Act of 1934 during the preceding 12 months (or for such shorter  period
         that the  registrant  was required to file such  reports),  and (2) has
         been subject to such filing requirements for the past 90 days.

         Yes     XX                 No_______
                ---
         Indicate  the  number of  shares  outstanding  of each of the  issuer's
         classes of common stock, as of December 1, 1995.

         Common Stock, $.01 par value per share:      6,461,471      shares.
                                                ---------------------       



<PAGE>

<PAGE>




         Part I                     FINANCIAL INFORMATION               Page No.


              Item 1. Financial Statements *

                        Consolidated Balance Sheets -
                             January 31, 1995 and October 31, 1995...........3

                        Consolidated Statements of Operations -
                             For the Three Months Ended
                             October 31, 1994 and 1995.......................4

                        Consolidated Statements of Operations -
                             For the Nine Months Ended
                             October 31, 1994 and 1995.......................5

                        Consolidated Statements of Cash Flows -
                             For the Nine Months Ended
                             October 31, 1994 and 1995.......................6


                        Notes to Financial Statements........................7


              Item 2    Management's Discussion and Analysis of
                        Financial Condition and Results of
                        Operations.........................................8-9



         *    The  Balance  Sheet at  January  31,  1995 has been taken from the
              audited  financial  statements at that date.  All other  financial
              statements are unaudited.







                                     - 2 -



<PAGE>

<PAGE>




                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                                 (in thousands)


<TABLE>
<CAPTION>
                                                     JANUARY 31,   OCTOBER 31,
                                                         1995          1995
                                                         ----          ----
ASSETS                                                             (unaudited)
<S>                                                    <C>          <C>    
Current Assets:
     Cash and Cash Equivalents                         $ 1,421      $ 1,945
     Accounts Receivable - Net                          13,414       27,046
     Inventories - Net                                  25,532       20,481
     Prepaid and Refundable Income Taxes                 4,204          265
     Prepaid Expense & Other Current Assets                466          940
                                                       -------      -------
          Total Current Assets                          45,037       50,677
                                                       -------      -------
Property and Equipment at Cost - Net                     7,015        6,545
Other Assets                                               803        1,259
Deferred Income Taxes                                    1,717          256
                                                       -------      -------
                                                       $54,572      $58,737
                                                       =======      =======

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
     Notes Payable                                     $12,907      $16,160

     Current Maturities of Capital Leases                  573          573
     Accounts Payable                                    3,947        3,290
     Accrued Expenses                                    2,152        2,340
     Accrued Nonrecurring Charges                        2,856        2,620
                                                       -------      -------
          Total Current Liabilities                     22,435       24,983

Obligations Under Capital Leases                         1,479        1,060
Nonrecurring Charges -  Long Term                          557          557


Stockholders' Equity:
     Preferred stock, 1,000,000 shares authorized;
       no shares issued and outstanding
     Common Stock, $.01 par value: authorized
       20,000,000 shares; issued and outstanding,
       6,459,381 shares on January 31, 1995 and
       on October 31, 1995                                  65           65
     Additional Paid-in Capital                         23,603       23,603
     Retained Earnings                                   6,433        8,469
                                                       -------      -------
                                                        30,101       32,137
                                                       -------      -------
                                                      $ 54,572     $ 58,737
                                                      ========     ========
</TABLE>

                See Accompanying Notes to Financial Statements.

 




                                      -3-



<PAGE>

<PAGE>



                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except share and per share amounts)

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED
                                                   -----------------------------
                                                            OCTOBER 31,
                                                       1994              1995
                                                       ----              ----
                                                            (Unaudited)

<S>                                                <C>              <C>         
Net Sales                                          $     70,057     $     54,892

Commission Income                                         3,569            2,803
                                                   ------------     ------------

     Net Sales and Revenues                              73,626           57,695

Cost of Goods Sold                                       60,559           45,202
                                                   ------------     ------------
     Gross Profit                                        13,067           12,493

Selling, General and
  Administrative Expenses                                 6,962            6,050
Unusual Charge - Note 6                                   5,700                0
                                                   ------------     ------------

     Operating Profit                                       405            6,443

Interest and Financing Charges, Net                       1,220              853
                                                   ------------     ------------

     Income (Loss) Before Taxes                            (815)           5,590

Income Taxes (Benefit)                                     (363)           2,237
                                                   ------------     ------------

     Net Income (Loss)                             $       (452)    $      3,353
                                                   ============     ============

Income (Loss) per common share:

Primary;
  Net Income (Loss) per common share               $       (.07)    $        .50
                                                   ============     ============

  Weighted average number of shares
    outstanding                                       6,466,709        6,771,737
                                                   ============     ============

Fully Diluted;
  Net Income (Loss) per common share               $       (.07)    $        .50
                                                   ============     ============

  Weighted average number of shares
    outstanding                                       6,466,709        6,771,737
                                                   ============     ============
</TABLE>


                See Accompanying Notes to Financial Statements.


                                      -4-



<PAGE>

<PAGE>



                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except share and per share amounts)


<TABLE>
<CAPTION>

                                                         NINE MONTHS ENDED
                                                    ------------------------------
                                                            OCTOBER 31,
                                                     1994               1995
                                                     ----               ----
                                                            (Unaudited)
<S>                                               <C>               <C>
Net Sales                                         $    135,061      $     94,354

Commission Income                                        6,881             8,648
                                                  ------------      ------------

     Net Sales and Revenues                            141,942           103,002

Cost of Goods Sold                                     118,780            80,203
                                                  ------------      ------------

     Gross Profit                                       23,162            22,799

Selling, General and
  Administrative Expenses                               19,650            16,895
Unusual Charge - Note 6                                  5,700                 0
                                                  ------------      ------------

     Operating Profit (Loss)                            (2,188)            5,904

Interest and Financing Charges, Net                      2,771             2,251
                                                  ------------      ------------

     Income (Loss) Before Taxes                         (4,959)            3,653

Income Taxes (Benefit)                                  (2,212)            1,617
                                                  ------------      ------------

     Net Income (Loss)                            $     (2,747)     $      2,036
                                                  ============      ============

Income (Loss) per common share:

Primary;
  Net Income (Loss) per common share              $       (.42)     $        .31
                                                  ============      ============

  Weighted average number of shares
    outstanding                                      6,474,438         6,571,398
                                                  ============      ============

Fully Diluted;
  Net Income (Loss) per common share              $       (.42)     $        .31
                                                  ============      ============

  Weighted average number of shares
   outstanding                                       6,474,438         6,652,744
                                                  ============      ============
</TABLE>


                See Accompanying Notes to Financial Statements.

                                      -5-



<PAGE>

<PAGE>




                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                                 NINE MONTHS ENDED
                                                                                                 -----------------
                                                                                                     OCTOBER 31,
                                                                                                     -----------
                                                                                               1994              1995
                                                                                               ----              ----
                                                                                                    (Unaudited)
<S>                                                                                          <C>            <C>
Cash Flows from Operating Activities:
   Net Income (Loss)                                                                         $  (2,747)     $   2,036
   Adjustments to Reconcile Net Income:
     Depreciation and Amortization                                                               1,115          1,158
     Unusual Charge                                                                              5,700              0

Changes in Operating Assets and Liabilities:
   Accounts Receivable                                                                         (31,422)       (13,632)
   Inventory                                                                                    (6,208)         5,051
   Prepaid and refundable Income Taxes                                                          (2,496)         3,939
   Prepaid Expenses                                                                                386           (474)
   Other Assets                                                                                    (11)          (396)
   Deferred Income Taxes                                                                             0          1,461
   Accounts Payable and Accrued Expenses                                                         8,312           (704)
                                                                                             ---------      ---------
Net Cash (Used in) Operating Activities                                                        (27,371)        (1,561)
                                                                                             ---------      ---------

Cash Flows for Investing Activities:
   Capital Expenditures                                                                           (381)          (688)
   Payment for purchase of PT Hwakang Indawa,                                                        0            (61)
      net of cash acquired
   Investment in Joint Venture                                                                    (428)             0
                                                                                             ---------      ---------

Net Cash (Used in) Investing Activities:                                                          (809)          (749)
                                                                                             ---------      ---------

Cash Flows from Financing Activities:
     Borrowings under bankers' acceptances and notes                                           135,046         63,010
     Repayments of bankers' acceptances and notes                                             (106,220)       (59,757)
     Proceeds from capital lease obligations                                                     1,150              0
     Payment of capital lease obligations                                                         (157)          (419)
                                                                                             ---------      ---------

Net Cash Provided by Financing Activities                                                       29,819          2,834
                                                                                             ---------      ---------

Net Increase in Cash                                                                             1,639            524

Cash at Beginning of Period                                                                        833          1,421
                                                                                             ---------        -------

Cash at End of Period                                                                            2,472        $ 1,945
                                                                                              =========       =======

Supplemental Disclosures of Cash Flow Information
     Cash Paid During the Period for:
        Interest                                                                             $    2,441     $   2,251
        Income Taxes                                                                         $       38     $     157

</TABLE>

                See Accompanying Notes to Financial Statements.



                                      -6 -



<PAGE>

<PAGE>





                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General Discussion

The results of the three and nine month  periods  ended October 31, 1995 are not
necessarily  indicative of the results  expected for the entire fiscal year. The
accompanying financial statements included herein are unaudited.  In the opinion
of management, all adjustments (consisting of only normal recurring adjustments)
necessary  for a  fair  presentation  of  the  financial  position,  results  of
operations and cash flows for the interim periods presented have been reflected.

The  accompanying  financial  statements  should be read in conjunction with the
financial statements and notes included in the Company's Form 10K filed with the
Securities and Exchange Commission for the year ended January 31, 1995.

Note 2 - Inventories


<TABLE>
<CAPTION>

                                                   (in thousands)
                                           January 31,       October 31,
                                               1995             1995
                                               ----             ----
      <S>                                     <C>              <C>
     Inventories consist of:
     Finished products ...............       $23,107          $15,521
     Work-in-process .................            52               36
     Raw materials ...................         2,373            4,924
                                             -------          -------
                                             $25,532          $20,481
                                             =======          =======
</TABLE>



Note 3 - Net Income (Loss) Per Common Share

Net income  (loss) per common share is based on the weighted  average  number of
common shares and common share equivalents  during each of the periods.  Primary
and fully diluted  earnings per share include the dilutive effect of unexercised
stock options.

Note 4 - Notes Payable

The  Company  has a loan  agreement  with three  banks for  $48,000,000  through
January 30, 1996 and  $40,000,000  through May 31,  1996,  of which  $40,000,000
through January 30, 1996 and  $32,000,000  through May 31, 1996 is available for
direct  borrowings  and the unused  balance for  letters of credit.  All amounts
available for borrowings are subject to borrowing base formulas.

Note 5 - Nonrecurring Charges

As of the year ended  January 31, 1995,  the Company had a remaining  reserve of
approximately  $3.4 million related to a cost reduction  program.  The status of
the components of the provision at October 31, 1995 was:


<TABLE>
<CAPTION>

                                                            (in thousands)
                                            Balance             1995              Balance
                                        January 31, 1995      Activity        October 31, 1995
                                        ----------------      ---------       ----------------
<S>                                          <C>                   <C>           <C>
Disposal of Asian Facility ............       $2,500            $   0            $ 2,500
Shut down of Domestic Facilities ......          579             (100)               479
Severance and related costs ...........          334             (136)               198
                                              ------            -----            -------
                                              $3,413            $(236)           $ 3,177
                                              ======            =====            =======

</TABLE>


Note 6 - Unusual Charge

During the quarter ended October 31, 1994 the Company recorded an unusual charge
for inventory markdowns of $5.7 million in the recognition of the high levels of
inventory on hand caused by an unusually warm fall season and the resulting lack
of customer reorders.

                                      -7-



<PAGE>

<PAGE>

I
tem 2. Management's Discussion and Analysis of Financial Condition and Results 
of Operations.

Results of Operations

Net sales and revenues  for the three  months ended  October 31, 1995 were $57.7
million  compared to $73.6  million for the same period last year.  For the nine
months  ended  October 31,  1995,  net sales and  revenues  were $103.0  million
compared to $141.9  million for the same period in the prior year.  The decrease
in net sales  during the three month  period  ended  October 31, 1995 was due to
continued  weakness in the retail business  environment,  as well as warmer than
usual  weather  patterns,  both of which  adversely  affected  sales of  leather
outerwear. The Company expects that the weak retail environment will continue to
adversely  affect sales in the quarter  ending  January 31,  1996.  For the nine
month period ended October 31, 1995, approximately $26.7 million of the decrease
in net sales and revenues was the result of lower sales at the retail level. The
balance  of the decrease (approximately  $12.2  million) is attributable to  the
recognition  by the  Company  of only  commission  income on   certain  types of
sales  where the Company's  customers  provide  letters  of  credit   which  are
transferred  by the Company  directly  to overseas  manufacturers  or  where the
Company's   customer  provided  a  letter   of   credit   directly   to overseas
manufacturers. Prior to the quarter ended July 31, 1994, the customer provided a
letter of credit to the Company  and  the  Company  opened  a letter  of  credit
to the  manufacturer. Accounting  rules  require the Company  to recognize  only
commission  income with respect to transactions  where the Company does not open
a letter of credit. The Company  expects that it will  continue to  utilize this
type  transaction  which results in the Company reporting lower net sales and
revenues.

For the nine months ended October 31, 1995 and 1994 the Company  recognized $8.6
million and $ 6.9 million of commission income, respectively. If the Company had
recognized the full amount of sales from this type of transaction, net sales and
revenues would have been $151.0 million and $177.7 million, respectively.

Gross  profit was $12.5  million for the three  months  ended  October 31, 1995,
compared  to $13.1  million  in the same  period  last year.  Gross  profit as a
percentage  of net sales and  revenues  was  21.7%  for the three  months  ended
October 31, 1995,  compared to 17.7% for the same period last year. For the nine
month period ended  October 31, 1995,  gross profit was $22.8 million , or 22.1%
of net sales and  revenues,  compared to $23.2 million or 16.3% of net sales and
revenues  for the same period last year.  While the change in the use of certain
letters of credit to transact sales did not impact gross profit dollars,  it did
affect gross profit as a  percentage  of net sales and revenues  since net sales
and  revenues  recognized  from such  transactions  were lower.  Had the Company
recognized the full amount of such sales, gross profit for the nine months ended
October 31, 1995 would have been 15.1% and 13.0%, respectively, of net sales and
revenues.  The increase in the gross profit  percentage was a result of improved
margins in a majority of product lines as well as cost reductions resulting from
closure of the Company's domestic manufacturing facilities.

Selling,  general  and  administrative  expenses  of $6.1  million for the three
months ended October 31, 1995 were approximately  $912,000 less than in the same
period last year. As a percentage of net sales and  revenues,  selling,  general
and  administrative  expenses  were 10.5% in this  period  compared to 9.5% last
year. For the nine month period,  selling, general and  administrative  expenses
were  $16.9  million  or 16.4% of net  sales  and  revenues,  compared  to $19.7
million, or 13.8% of net sales and revenues  for  the same period last year. The
increase  as a  percentage  of net sales and  revenues  was the  result of lower
reported net sales and revenues as described above.  The lower selling,  general
and  administrative  expenses  were the result of the  implementation  of a cost
reduction  program which began in the second half of the prior fiscal year.  The
Company is continuing to monitor and reduce expense levels and expects  selling,
general and administrative expenses to continue to decrease for the remainder of
the year, compared to last year, as a result of this program.





                                      -8-



<PAGE>

<PAGE>


Interest expense of $853,000 was $367,000 lower in the quarter ended October 31,
1995,  compared to interest  expense in the same period last year.  For the nine
months ended October 31, 1995,  interest expense was $2.3 million, a decrease of
$520,000 from the prior year. The decrease is  attributable  to lower  borrowing
levels as a result of the Company  maintaining lower levels of inventory,  which
more than offset higher interest rates and other financing costs.

Income taxes of $2.2 million reflects an effective tax rate  of  40.0%  for  the
three  months  ended  October 31,  1995,  compared to an income tax  benefit  of
$363,000 which  reflected an effective tax rate  of  44.5%  in  the   comparable
period in the prior year.  For the nine months ended  October 31,  1995,  income
taxes of $1.6 million  reflects  an  effective  tax rate of 44.3%,  compared  to
an income tax benefit  of $2.2  million  in the same  period  last  year,  which
reflected  an effective  tax rate of 44.6 %.  The  decreased  effective tax rate
for the nine months  results  from a lower  provision  for  current  year income
taxes (40%), resulting  from the state and local tax loss carry forward from the
prior year, offset in part by additional  federal taxes of $157,000 due  to  the
settlement of an income tax audit for certain prior periods through January  31,
1993.

As a result of the foregoing, for the three month period ended October 31, 1995,
the Company had net income of $3.4 million, or $.50 per share, compared to a net
loss of  $452,000,  or $.07 per share,  for the  comparable  period in the prior
year.  For the nine month  period ended  October 31,  1995,  the Company had net
income  of  $2.0  million,  or $.31 per share,  compared  to a net  loss of $2.7
million, or $.42 per share, for the same period in the prior year.

Liquidity and Capital Resources

The Company has a loan  agreement,  which expires May 31, 1996,  providing for a
collateralized  working  capital  line of  credit  for a  maximum  amount of $48
million through January 30, 1996 (reduced to $40 million  commencing January 31,
1996),  of which a maximum of $40 million  (reduced  to $32  million  commencing
January 31, 1996) is available for direct  borrowings and the unused balance for
letters of credit. All amounts available for borrowings are subject to borrowing
base formulas and overadvances specified in the agreement.

Direct  borrowings bear interest at the agent's prime rate (8.75% as of December
1,  1995)  plus 2%.  All  borrowings  are  collateralized  by the  assets of the
Company.  The loan agreement  requires the Company,  among other  covenants,  to
maintain  certain  earnings and tangible net worth  levels,  and  prohibits  the
payments of cash dividends.  As of October 31, 1995,  there was $13.7 million of
borrowings  outstanding and approximately $ 8.2 million of contingent  liability
under  open  letters of credit.  The  amount  borrowed  under the line of credit
varies based on the Company's seasonal requirements.  The current loan agreement
reduced the maximum credit line  available to the Company  compared to the prior
year.  The Company is carrying lower levels of inventory in the  current  fiscal
year  compared to the prior year and,  as a result,  believes that this facility
will be sufficient to meet its working capital needs. Inventories as  of October
31, 1995 were $20.5 million  compared to $38.9 million as of October 31, 1994.

The Company's  wholly-owned  Indonesian  subsidiary  has a line of credit with a
bank for  approximately  $3.5  million  which  is  supported  by a $2.0  million
stand-by  letter of credit  issued under the  Company's  loan  agreement.  As of
October 31, 1995, the borrowing by the Indonesian  subsidiary  under its line of
credit approximated $2.4 million.



                                      -9-



<PAGE>

<PAGE>



 
                                  SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                            G-III APPAREL GROUP, LTD.
                                                   (Registrant)




Date: December 13, 1995                     By: /s/  MORRIS GOLDFARB
                                                __________________________
                                                Morris Goldfarb
                                                President and Chief
                                                Executive Officer


Date: December 13, 1995                     By: /s/  ALAN FELLER
                                                __________________________
                                                Alan Feller
                                                Chief Financial Officer,
                                                Treasurer, and Secretary


                                      -10-








<TABLE> <S> <C>



<ARTICLE>                                  5
<MULTIPLIER>                           1,000
       
<S>                               <C>
<PERIOD-TYPE>                           9-MOS
<FISCAL-YEAR-END>                 JAN-31-1996
<PERIOD-END>                      OCT-31-1996
<CASH>                                  1,945
<SECURITIES>                                0
<RECEIVABLES>                          27,046
<ALLOWANCES>                                0
<INVENTORY>                            20,481
<CURRENT-ASSETS>                       50,677
<PP&E>                                  6,545
<DEPRECIATION>                              0
<TOTAL-ASSETS>                         58,737
<CURRENT-LIABILITIES>                  24,983
<BONDS>                                     0
<COMMON>                                   65
<PREFERRED-MANDATORY>                       0
<PREFERRED>                                 0
<OTHER-SE>                             32,072
<TOTAL-LIABILITY-AND-EQUITY>           58,737
<SALES>                                94,354
<TOTAL-REVENUES>                      103,002
<CGS>                                  80,203
<TOTAL-COSTS>                               0
<OTHER-EXPENSES>                       16,895
<LOSS-PROVISION>                            0
<INTEREST-EXPENSE>                      2,251
<INCOME-PRETAX>                         3,653
<INCOME-TAX>                            1,617
<INCOME-CONTINUING>                         0
<DISCONTINUED>                              0
<EXTRAORDINARY>                             0
<CHANGES>                                   0
<NET-INCOME>                            2,036
<EPS-PRIMARY>                             .31
<EPS-DILUTED>                             .31
        

</TABLE>