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G-III Apparel net sales increase 39 percent in Q2

5 Sept 2014

REPORT_ For the quarter ended July 31, 2014; G-III reported that net sales, driven by a strong wholesale performance

across several categories, increased by 39 percent to 424 million dollars from 304.2 million dollars in the year-ago period. Of this increase, 53.6 million dollars was the result of net sales by the G.H. Bass business that was acquired in November 2013.

The Company's net income for the second quarter was 6.2 million dollars, or 0.29 dollars per diluted share, compared to net income of 3.6 million dollars, or 0.17 dollars per diluted share, in the prior year's comparable period.

Commenting on the results, Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, “We are pleased to report a strong second quarter. In spite of losses related to the transition and repositioning of our recently acquired G.H. Bass business, we were able to show higher overall profits due to strong shipments in our licensed and non-licensed businesses. There were strong performances by a number of Calvin Klein divisions and several of our outerwear and dress businesses, all of which enabled us to exceed our forecast for the second quarter.”

The company has also revised its prior guidance for the full fiscal year ending January 31, 2015. The company is now forecasting net sales of approximately 2.11 billion dollars and net income between 90.6 million dollars and 93.9 million dollars, or a range between 4 dollars and 4.15 dollars per diluted share, compared to its previous guidance of net sales of approximately 2.06 billion dollars and net income between 87.9 million dollars and 91.2 million dollars, or a range between 4.05 dollars and 4.20 dollars per diluted share.

The company is now projecting adjusted EBITDA for fiscal 2015 to increase between 18 percent and 22 percent to between 174 million dollars and 179.4 million dollars compared to its previous guidance of adjusted EBITDA between approximately 170.2 million dollars and 175.5 million dollars. For its third fiscal quarter ending October 31, 2014, the company is forecasting net sales of approximately 805 million dollars compared to 668.7 million dollars in the comparable quarter last year. The company is also forecasting net income for the third fiscal quarter between 63.9 million dollars and 67.3 million dollars, or between 2.75 dollars and 2.90 dollars per diluted share.