G-III Apparel Group, Ltd. Announces Second Quarter Fiscal 2000 Results
NEW YORK -- Sept. 9, 1999 -- G-III Apparel Group, Ltd. (Nasdaq: GIII) today announcedoperating results for the three and six months ended July 31, 1999.
For the three-months ended July 31, 1999, net sales were $33.2 million compared to $35.7 million during the same period last year. The Company had net incomeof $1.6 million, or $0.24 per diluted share, for the three-month period this year compared to net income of $1.4 million, or $0.20 per diluted share, during the sameperiod last year. During the three-month period this year, the Company incurred approximately $382,000 of losses, net of minority interest, in connection with theCompany's BET Design Studio joint venture with Black Entertainment Television, Inc. compared to $342,000 of such net losses during the same period last year.
For the six-months ended July 31, 1999, net sales were $41.7 million compared to $40.7 million during the same period last year. The Company had a net loss forthe six-month period this year of $1.8 million, or $0.27 per share, compared to a net loss of $2.5 million, or $0.39 per share, during the same period last year.During the six-month period this year, the Company incurred approximately $813,000 of losses, net of minority interest, in connection with the Company's BETDesign Studio joint venture with Black Entertainment Television, Inc. compared to $593,000 of such net losses during the same period last year.
Morris Goldfarb, Chief Executive Officer of G-III commented, "We are pleased with the results for the second quarter as net income increased by 13.4% over lastyear's quarter. Of particular note, gross margin in the quarter improved from 26.3% last year to 28.5% this year, a direct result of the continued strength in ourlicensed business."
Mr. Goldfarb concluded, "Looking towards the balance of fiscal 2000, we are encouraged by favorable order trends that we are seeing in both our licensed andnon-licensed businesses. Additionally, we continue to build upon our strategy of seeking opportunities with brands that offer higher gross margins, as evidenced byour recent agreement to distribute Caterpillar apparel."
G-III Apparel Group is a leading manufacturer and distributor of leather and non-leather outerwear apparel. The Company has fashion licenses with Kenneth ColeProductions, Nine West Group and Tommy Hilfiger, a distribution agreement for Caterpillar apparel, and licensing agreements with the National Football League,National Hockey League, National Basketball Association and more than 20 universities nationwide.
Statements concerning the Company's business outlook for future economic performance; anticipated revenues, expenses or other financial items; productintroductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performanceor 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 other factors which could cause actual results to differ materially from those stated in such statements. Such 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, seasonality, customeracceptance of new product, the impact of competitive products and pricing, dependence on existing management, general economic conditions, as well as other risksdetailed in the Company's filings with the Securities and Exchange Commission.
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES (NASDAQ:GIII - news) CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited) Three Months Ended Six Months Ended 7/31/99 7/31/98 7/31/99 7/31/98 Net sales $ 33,246 $ 35,742 $ 41,716 $ 40,692 Cost of sales 23,761 26,343 31,398 31,591 Gross profit 9,485 9,399 10,318 9,101 Selling, general and administrative expenses 6,772 6,732 13,659 13,072 Operating profit (loss) 2,713 2,667 (3,341) (3,971) Interest and financing charges, net 430 659 528 822 Income (loss) before minority interest and income taxes 2,283 2,008 (3,869) (4,793) Minority interest 382 342 813 593 Income before income taxes 2,665 2,350 (3,056) (4,200) Income tax expense (benefit) 1,066 940 (1,222) (1,680) Net income (loss) $ 1,599 $ 1,410 $ (1,834) $ (2,520) Basic net income (loss) per common share $ 0.24 $ 0.22 $ (0.27) $ (0.39) Diluted net income (loss) per common share $ 0.24 $ 0.20 $ (0.27) $ (0.39) Weighted average shares outstanding: Basic 6,717,921 6,525,700 6,717,921 6,517,822 Diluted 6,786,911 7,074,267 6,717,921 6,517,822
CONTACT: G-III Apparel Group, Ltd. Wayne Miller, Chief Financial Officer 212/403-0507 or Investor Relations: Cheryl Schneider/Shannon Moody/Natasha Boyden Press: David Nugent/Jamie Kohn 212/850-5699