G-III Apparel Group, Ltd. (NASDAQ: GIII) today announced operating results for the three and twelve-month periods ended January 31, 2003.
For the three-month period ended January 31, 2003, G-III reported net sales increased 55.1% to $47.7 million from $30.7 million during the comparable period last year. The Company reported a net loss of $4.5 million, or ($0.66) per share, for the three-month period, compared to a net loss of $3.7 million, or ($0.55) per share, during the comparable period last year. For the twelve-month period ended January 31, 2003, net sales were $202.7 million compared to $201.4 million last year. The Company reported net income of $382,000, or $0.05 per diluted share, for the twelve months ended January 31, 2003 compared to net income of $2.4 million, or $0.32 per diluted share, last year.
The results for the three and twelve-month periods ended January 31, 2003 include charges aggregating $4.1 million ($3.4 million on an after-tax basis) in connection with the Company's previously announced decision to close its manufacturing facility in Indonesia. Excluding these charges, the Company would have had a net loss for the three-month period of $1.1 million, or ($0.16) per share, and net income for the twelve-month period of $3.8 million, or $0.52 per diluted share. In addition, included in the results for the year are after-tax operating losses at our Indonesian facility, prior to its closedown, of approximately $1.8 million.
Morris Goldfarb, Chairman and Chief Executive Officer said, ''We believe we are positioned to both resume sales growth and report improved levels of operating profitability. The transition of our production formerly done in the Indonesian facility to third-party manufacturing is on schedule. This should improve gross margin and operating profit and allow management to focus more of its time and attention on our core business.''
The Company reported that inventory at January 31, 2003 decreased by 16.7% to $30.9 million compared to inventory of $37.2 million at January 31, 2002. The Company noted that raw material inventory had been significantly reduced as a result of the expected increase in third party manufacturing related to the closing of the Indonesian facility.
For the first quarter ending April 30, 2003, the Company is comfortable with an estimated loss per share of between ($0.40) and ($0.44). The Company's loss in the quarter ended April 30, 2002 was ($0.62) per share.
