G-III Apparel Group, Ltd. today announced operating results for the three and twelve-month periods ended January 31, 2004.
For the twelve-month period ended January 31, 2004, net sales increased
by 10.6% to $224.1 million compared to $202.7 million last year. The
Company reported net income of $8.4 million, or $1.14 per diluted
share, for the twelve months ended January 31, 2004 compared to net
income of $382,000, or $0.05 per diluted share, last year.
For the three-month period ended January 31, 2004, G-III reported net
sales of $34.5 million compared to $47.7 million during the same period
last year. The Company reported a net loss of $3.1 million, or ($0.44)
per share, for the three-month period, compared to a net loss of $4.5
million, or ($0.66) per share, during the same period last year.
The results for the three and twelve-month periods ended January 31,
2003 included charges aggregating $4.1 million ($3.4 million on an
after-tax basis) in connection with the closing of the Company's
manufacturing facility in Indonesia. In addition, included in the
results for the prior 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 are
pleased with our results for the full year. The primary driver of the
results was a strong performance of our sports apparel, but we were
also pleased with the performance of a number of our other brands,
particularly Sean Jean and Cole Haan. While the retail environment
remained challenging, we achieved our financial plan and ended the year
with a strong balance sheet.''
For the full year, gross profit percentage improved to 27.6% from 24.3%
in the prior year due to increased sales of higher margin sports
apparel. Gross profit as a percentage of net sales during the fourth
quarter decreased to 12.9% from 20.2% in the fourth quarter of last
year due to lower levels of regular price sales and increased
allowances and markdowns.
For the first quarter ending April 30, 2004, the Company is forecasting
a net loss per share of between ($0.55) and ($0.60). In last year's
first quarter, the net loss was ($0.38) per share.
Mr. Goldfarb concluded, #'In the upcoming year we expect to continue to
grow our core sports apparel, and pursue new opportunities in fashion.
We believe that with our multi-channel mix of distribution, that there
are numerous opportunities for us to further diversify our business''.
