<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             April 30, 1996
                              --------------------------------------------------

                                       OR

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

For the transition period from              to
                              --------------------------------------------------

Commission File Number                   0-18183
                       ---------------------------------------------------------
                                         

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


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

       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 June 1, 1996.

Common Stock, $.01 par value per share:      6,467,336      shares.
                                       ---------------------





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<PAGE>





<TABLE>
<CAPTION>


Part I                     FINANCIAL INFORMATION                        Page No.
<S>             <C>                                                          <C>

    Item 1.     Financial Statements *

                Consolidated Balance Sheets -

                        January 31, 1996 and April 30, 1996....................3

                Consolidated Statements of Operations -
                        For the Three Months Ended
                        April 30, 1995 and 1996................................4

                Consolidated Statements of Cash Flows -
                        For the Three Months Ended
                        April 30, 1995 and 1996................................5

                Notes to Financial Statements..................................6


    Item 2.     Management's Discussion and Analysis of
                Financial Condition and Results of
                Operations...................................................7-8

</TABLE>



*   The  Balance  Sheet at January  31,  1996 has been  taken  from the  audited
    financial  statements  at that  date.  All other  financial  statements  are
    unaudited.
























                                      - 2 -



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                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

               (in thousands, except share and per share amounts)


<TABLE>
<CAPTION>
                                                               JANUARY 31,                    APRIL 30,
                                                                   1996                          1996
ASSETS                                                                                       (unaudited)
<S>                                                          <C>                            <C>
Current Assets:
     Cash and Cash Equivalents                               $       7,617                  $       3,122
     Accounts Receivable - Net                                       8,995                          5,157
     Inventories - Net                                              14,207                         18,196
     Prepaid and Refundable Income Taxes                               502                          2,907
     Prepaid Expense & Other Current Assets                            968                          1,165
                                                                  --------                        -------
           Total Current Assets                                     32,289                         30,547

Property and Equipment at Cost - Net                                 6,324                          6,000
Other Assets                                                           927                          1,022
Deferred Income Taxes                                                1,717                          1,717
                                                                   -------                        -------
                                                            $       41,257                  $      39,286
                                                                    ======                         ======


LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
     Notes Payable                                          $        2,980                  $       3,384

     Current Maturities of Obligations Under
       Capital Leases                                                  571                            571
     Accounts Payable                                                2,469                          2,905
     Accrued Expenses                                                1,751                          2,584
     Accrued Nonrecurring Charges                                    2,294                          2,238
                                                                   -------                        -------
           Total Current Liabilities                                10,065                         11,682

Obligations Under Capital Leases                                       919                            771
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,
       6,465,836 shares on January 31, 1996 and
       on April 30, 1996                                                65                              65
     Additional Paid-in Capital                                     23,615                          23,615
     Retained Earnings                                               6,036                           2,596
                                                                   -------                         -------
                                                                    29,716                          26,276
                                                                   -------                         -------
                                                            $       41,257                  $       39,286
                                                                   =======                         =======
</TABLE>

See Accompanying Notes to Financial Statements.




                                       -3-



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                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

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


<TABLE>
<CAPTION>

                                                                          THREE MONTHS ENDED
                                                                --------------------------------------
                                                                               APRIL 30,
                                                                               ---------
                                                                1995                              1996
                                                                ----                              ----
                                                                              (Unaudited)
<S>                                                       <C>                               <C>
Net Sales                                                 $     9,275                       $       5,063

Cost of Goods Sold                                              8,612                               4,911
                                                               ------                              ------

       Gross Profit                                               663                                 152

Selling, General and
   Administrative Expenses                                      5,315                               5,660
                                                               ------                              ------

       Operating Loss                                          (4,652)                             (5,508)

Interest and Financing Charges, Net                               406                                 212
                                                               --------                           -------

       Loss Before Taxes                                       (5,058)                             (5,720)

Income Taxes (Benefit)                                         (2,023)                             (2,280)
                                                               --------                           -------

       Net Loss                                           $    (3,035)                      $      (3,440)
                                                               ========                           =======


Loss per common share:

Primary and Fully Diluted;
  Net Loss per common share                               $      (.47)                      $        (.53)
                                                                 ====                               =====

  Weighted average number of
   shares outstanding                                       6,459,381                           6,465,836
                                                            =========                           =========



</TABLE>





See Accompanying Notes to Financial Statements.





                                       -4-



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                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                THREE MONTHS ENDED
                                                                        ---------------------------------
                                                                                    APRIL 30,
                                                                                    ---------
                                                                         1995                       1996
                                                                         ----                       ----
                                                                                   (Unaudited)
<S>                                                               <C>                       <C>
Cash Flows from Operating Activities:
    Net Loss                                                     $        (3,035)           $     (3,440)
    Adjustment to Reconcile Net Loss:
       Depreciation and Amortization                                         255                     364

Changes in Operating Assets and Liabilities:
    Accounts Receivable                                                    8,710                   3,838
    Inventory                                                             (3,655)                 (3,989)
    Prepaid and refundable Income Taxes                                   (1,941)                 (2,405)
    Prepaid Expenses                                                        (316)                   (197)
    Other Assets                                                             (81)                    (95)
    Accounts Payable and Accrued Expenses                                   (177)                  1,269
    Accrued Nonrecurring Charge                                             (128)                    (56)
                                                                     -----------                ---------

Net Cash (Used in) Operating Activities                                     (368)                 (7,299)
                                                                     -----------                ---------

Cash Flows for Investing Activities:
    Capital Expenditures                                                    (300)                    (93)
    Capital Dispositions                                                       0                      53
                                                                     -----------                ----------

Net Cash (Used in) Investing Activities:                                    (300)                    (40)
                                                                     -----------                ----------

Cash Flows from Financing Activities:
    Borrowings of notes payable                                            3,321                     404
    Repayments of notes payable                                           (3,543)                      0
    Payment of capital lease obligations                                    (120)                   (148)
                                                                     -----------                 ---------

Net Cash Provided by Financing Activities                                   (342)                    256
                                                                     -----------                 ---------

Net (Decrease) in Cash                                                    (1,010)                 (4,495)

Cash at Beginning of Period                                                1,421                   7,617
                                                                     -----------                 ---------

Cash at End of Period                                            $           411              $    3,122
                                                                     ===========                 =========

Supplemental Disclosures of Cash Flow Information
    Cash Paid During the Period for:
         Interest                                                $           238              $      109
         Income Taxes                                            $             2              $        1
</TABLE>


See Accompanying Notes to Financial Statements.

                                       -5-



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<PAGE>



                   G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General Discussion

The results of the three month period  ended April 30, 1996 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.

Certain reclassifications have been made to conform to the 1996 presentation.

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, 1996.


<TABLE>
<CAPTION>

Note 2 - Inventories                                                (in thousands)
- --------------------
                                                        January 31,                  April 30,
    Inventories consist of:                                 1996                        1996
                                                            ----                        ----
<S>                                                    <C>                         <C>        
          Finished products.......................     $   12,112                  $    13,388
          Work-in-process.........................             49                          513
          Raw materials...........................          2,046                        4,295
                                                          --------                    --------
                                                       $   14,207                  $    18,196
                                                          ========                    ========
</TABLE>


Note 3 - Net Loss Per Common Share

Net loss per  common  share is based on the  weighted  average  number of common
shares outstanding during each of the periods, adjusted for the dilutive  effect
of the common share equivalents, when applicable.

Note 4 - Notes Payable

The  Company  has a loan  agreement  with three  banks for  $48,000,000  through
October 30, 1996 and  $40,000,000  through May 31,  1997,  of which  $40,000,000
through October 30, 1996 and  $30,000,000  through May 31, 1997 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, 1996,  the Company had a remaining  reserve of
approximately  $2.9 million related to a cost reduction  program.  The status of
the components of the provision at the end of the period was:


<TABLE>
<CAPTION>

                                                                (in thousands)
                                                 Balance              1996           Balance
                                            January 31, 1996        Activity      April 30, 1996
                                            ----------------        --------      --------------

<S>                                                <C>               <C>                <C>
    Severance and related costs                   $  161             $   (40)          $    121
    Closure of domestic
         and foreign facilities                    2,690                 (16)             2,674
                                                   -----               -----              -----
                                                $  2,851             $   (56)         $   2,795
                                                   =====               =====              =====
</TABLE>






                                       -6-



<PAGE>

<PAGE>




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

Results of Operations

Net sales for the three months  ended April 30, 1996 were $5.1 million  compared
to $9.3 million for the same period last year.  The decrease in net sales during
the quarter was primarily due to lower sales in the JL Colebrook  ($2.5 million)
and Womens  Leather  ($1.5  million)  divisions.  These  declines  resulted from
weakness in retail  sales of  outerwear  apparel.  The Company  expects that the
softness in the outerwear apparel market will continue to adversely affect sales
in the quarter ending July 31, 1996.

Gross  profit was $152,000  for the quarter  ended April 30,  1996,  compared to
$663,000 in the same period last year. Gross profit as a percentage of net sales
was 3.0% for the three  months  ended April 30,  1996,  compared to 7.1% for the
same period last year. The decrease in the gross profit  percentage was a result
of certain  period costs  included in cost of goods sold being spread over lower
net sales.

Selling,  general  and  administrative  expenses  of $5.7  million for the three
months ended April 30, 1996 were  approximately  $345,000  more than in the same
period last year. The increase in selling,  general and administrative  expenses
compared  to last year  resulted  from  start-up  costs  relating to new product
development in branded  merchandise,  which includes  licensed product under the
Kenneth Cole label, as well as development of new distribution  channels.  These
increases  were  partially  offset by savings  resulting from the sub-lease of a
warehouse in March,  1996. The Company  continues to monitor and seeks to reduce
expense levels whenever possible.

For the three months ended April 30, 1996,  interest and  financing  charges was
$212,000,  a decrease  of $194,000  from the same period of the prior year.  The
decrease is attributable  to lower  borrowing  levels as a result of the Company
maintaining lower levels of inventory.

Income tax benefit of $2.3 million reflects an effective tax rate of 40% for the
three  months  ended April 30,  1996,  compared to an income tax benefit of $2.0
million  which  reflected the same  effective tax rate of 40% in the  comparable
period of the prior year.

As a result of the  foregoing,  for the three month period ended April 30, 1996,
the Company had a net loss of $3.4 million, or $.53 per share, compared to a net
loss of $3.0 million,  or $.47 per share, for the comparable period in the prior
year.















                                       -7-



<PAGE>

<PAGE>



Liquidity and Capital Resources

The Company has a loan  agreement,  which expires May 31, 1997,  providing for a
collateralized  working  capital  line of  credit  for a  maximum  amount of $48
million through October 30, 1996 (reduced to $40 million  commencing October 31,
1996),  of which a maximum of $40 million  (reduced  to $30  million  commencing
October 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 (8.25% as of June 1,
1996)  plus  1.75%.  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
payment of cash dividends. As of April 30, 1996, there were no direct borrowings
outstanding and approximately  $11.1 million of contingent  liability under open
letters of credit.  The amount  borrowed  under the line of credit  varies based
upon the Company's seasonal requirements.

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 April
30, 1996,  the borrowing by the Indonesian  subsidiary  under its line of credit
approximated $3.4 million.

































                                       -8-




<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:    June 14, 1996                  By: /s/ MORRIS GOLDFARB
                                            -----------------------------------
                                            Morris Goldfarb
                                            President and Chief
                                            Executive Officer


Date:    June 14, 1996                   By: /s/ ALAN FELLER
                                             ----------------------------------
                                             Alan Feller
                                             Chief Financial Officer,
                                             Treasurer, and Secretary

























                                       -9-


<PAGE>







<TABLE> <S> <C>

<ARTICLE>                              5
<MULTIPLIER>                           1,000
       
<S>                                    <C>
<FISCAL-YEAR-END>                      JAN-31-1997
<PERIOD-START>                         FEB-1-1996
<PERIOD-END>                           APR-30-1996
<PERIOD-TYPE>                          3-MOS
<CASH>                                 3,122
<SECURITIES>                           0
<RECEIVABLES>                          7,887
<ALLOWANCES>                          (2,730)
<INVENTORY>                            18,196
<CURRENT-ASSETS>                       30,547
<PP&E>                                 12,781
<DEPRECIATION>                         6,781
<TOTAL-ASSETS>                         39,286
<CURRENT-LIABILITIES>                  11,682
<BONDS>                                0
<COMMON>                               65
<PREFERRED-MANDATORY>                  0
<PREFERRED>                            0
<OTHER-SE>                             26,211
<TOTAL-LIABILITY-AND-EQUITY>           39,286
<SALES>                                5,063
<TOTAL-REVENUES>                       5,063
<CGS>                                  4,911
<TOTAL-COSTS>                          4,911
<OTHER-EXPENSES>                       0
<LOSS-PROVISION>                       0
<INTEREST-EXPENSE>                     212
<INCOME-PRETAX>                       (5,720)
<INCOME-TAX>                          (2,280)
<INCOME-CONTINUING>                   (3,440)
<DISCONTINUED>                         0
<EXTRAORDINARY>                        0
<CHANGES>                              0
<NET-INCOME>                          (3,440)
<EPS-PRIMARY>                         (.53)
<EPS-DILUTED>                         (.53)
        


</TABLE>