G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced operating results for the first quarter of fiscal 2013.
For the quarter ended April 30, 2012, G-III reported that net sales increased by 16.5% to $229.4 million, a record for its first fiscal quarter, from $196.9 million in the year-ago period. The Company’s net loss for the first quarter was $847,000, or $0.04 per share, compared to a net loss of $520,000, or $0.03 per share, in the prior year’s comparable period.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Our first quarter results met our expectations. We anticipate improved profitability for the full year as we expect input costs will moderate compared to prior year levels. Early booking trends for fall are good and give us confidence in our outlook for the full year.”
Mr. Goldfarb continued, “We believe we have a clear strategic advantage for us that our major growth initiatives, across a variety of categories, are underpinned by some of the best brands in the world. We are building significant businesses in a number of important categories. We are creating several platforms that are expected to show operating margin improvements as we increase in sales volume. In addition, we plan to layer on additional brands to these platforms.”
Mr. Goldfarb concluded, “We have successfully diversified our operations, aligned ourselves with powerful brands, and continued to drive efficiency. As a result of this strategy, we believe we have enhanced our ability to generate long-term value for our shareholders.”
The Company today reiterated its prior guidance for the full fiscal year ending January 31, 2013 and continues to forecast net sales of approximately $1.35 billion and net income of between $54.0 million and $56.0 million, or a range of $2.62 and $2.72 per diluted share. The Company also continues to project EBITDA for fiscal 2013 to increase approximately between 11% and 15% to approximately $102.5 million to $106.0 million. EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to net income in accordance with U.S. GAAP is included in a table accompanying the condensed financial statements in this release.