September 4, 2003

G-III Apparel Group, Ltd. Announces Second Quarter Fiscal 2004 Results

-- Net Sales Increase to $45.3 Million from $40.0 million
-- Operating Profit Increases to $4.8 Million from $1.4 million
-- Diluted Net Income Per Share Increases to $0.37 from $0.08

G-III Apparel Group, Ltd. (Nasdaq: GIII) today announced operating results for the second quarter of fiscal 2004.

For the three-month period ended July 31, 2003, G-III reported net sales of $45.3 million and net income of $2.7 million, or $0.37 per diluted share, compared to net sales of $40.0 million and net income of $576,000, or $0.08 per diluted share, during the comparable period last year.

For the six-month period ended July 31, 2003, G-III reported net sales of $64.0 million and net income of $91,000, or $0.01 per diluted share, compared to net sales of $52.7 million and a net loss of $3.6 million, or $0.54 per diluted share, during the comparable period last year.

Morris Goldfarb, G-III's Chief Executive Officer, said, "We are very pleased to report a strong second quarter, with strong operating margins. Our profit growth was driven by continued strength in our sports apparel business, which saw both significant new accounts as well as increased penetration. The sportswear component of our sports apparel business attained higher gross margins compared to our other businesses."

Mr. Goldfarb continued, "We believe, based on feedback from customers with regard to our product assortment and a good order book, we are well positioned for the fall season."

Also today, G-III Apparel Group issued guidance for the fiscal year ending January 31, 2004. For the fiscal year, the Company is forecasting net sales of approximately $220 million and diluted net income per share between $1.10 and $1.15.

About G-III Apparel Group, Ltd.

G-III Apparel Group, Ltd. is a leading manufacturer and distributor of leather and non-leather outerwear and apparel under our own labels, licensed labels and private labels. Company-owned labels include, among others, Black Rivet, Colebrook, Siena Studio and G-III. The Company has fashion licenses with Kenneth Cole, Nine West, Timberland, Cole Haan, Jones Apparel, Sean John, Bill Blass and James Dean and sports licensing agreements with the National Football League, National Hockey League, National Basketball Association, Major League Baseball and more than 50 universities nationwide.

Statements concerning the Company'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 include, but are not limited to, reliance on foreign manufacturers, the nature of the apparel industry, including changing customer demand and tastes, reliance on licensed product, seasonality, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. The Company 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 share and per share amounts)
                              (Unaudited)

                            Three Months Ended     Six Months Ended
                            7/31/03    7/31/02    7/31/03    7/31/02

Net sales                 $   45,299 $   40,022 $   64,011 $   52,713
Cost of sales                 29,618     29,209     43,976     40,997
                          ---------- ---------- ---------- ----------
Gross profit                  15,681     10,813     20,035     11,716
Selling, general and
 administrative expenses      10,844      9,453     19,603     16,967
                          ---------- ---------- ---------- ----------
Operating profit (loss)        4,837      1,360        432     (5,251)
Interest and financing
 charges, net                    230        396        278        521
                          ---------- ---------- ---------- ----------
Income (loss) before
 income taxes                  4,607        964        154     (5,772)

Income tax expense
 (benefit)                     1,889        388         63     (2,179)
                          ---------- ---------- ---------- ----------
Net income (loss)         $    2,718 $      576 $       91 $   (3,593)
                          ========== ========== ========== ==========
Basic net income (loss)
 per common Share         $     0.40 $     0.09 $     0.01 $    (0.54)
                          ========== ========== ========== ==========
Diluted net income (loss)
 per common share         $     0.37 $     0.08 $     0.01 $    (0.54)
                          ========== ========== ========== ==========
Weighted average shares
 outstanding:
  Basic                    6,879,920  6,714,200  6,877,909  6,708,383
  Diluted                  7,385,396  7,379,809  7,325,347  6,708,383

Balance Sheet Data (in thousands):
                                               At July 31, At July 31,
                                                   2003       2002
                                                ---------- ----------
Working Capital                                 $   47,480 $   42,957
Cash                                                   434        360
Inventory                                           59,393     60,645
Total Assets                                       115,017    115,135

Outstanding Borrowings                              33,298     39,971

Total Shareholders' Equity                      $   55,874 $   51,234
Contacts:
Investor Relations
James Palczynski, 203-222-9013
      or
G-III Apparel Group, Ltd.      
Wayne S. Miller, 212-403-0500


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