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Core outerwear inventory at G-III Apparel higher than last year
01 Apr '09
5 min read
Inventory also increased by an additional aggregate of $19 million in non-outerwear categories primarily related to growth of the Company's dress businesses and the launch of Calvin Klein women's sportswear. Core outerwear inventory was approximately $4 million higher than at the end of last year.
Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said, "We continue to be in a strong competitive and strategic position, despite the difficult market environment. Our licensed and non-licensed segments had another good year. However, we were required to record an impairment charge under applicable accounting rules primarily as a result of our market capitalization declining to a level below our book value.
Notwithstanding these required charges, our cash flow remains strong and we believe our portfolio of brands has good long-term growth potential. Our financial results for the year, excluding the impairment charges, speak to our excellent value proposition and our high degree of diversification. Additionally, we have a healthy balance sheet, adequate availability under our credit line, and a business philosophy and corporate culture that enables us to succeed even in difficult times like these."
Mr. Goldfarb continued, "We have recently taken a variety of actions to improve our financial performance, including additional reductions in personnel, reductions in executive and board compensation, other expense reductions, and a careful streamlining of our operations to maximize our potential in what may be a prolonged, difficult consumer environment. At the same time, we intend to continue to invest in the areas of our business that we expect will grow."
Mr. Goldfarb concluded, "There are several bright spots in our business at the moment, including dresses, which continue to book and sell-through well, and an excellent early performance from our first shipments of Calvin Klein women's sportswear. We believe that these bright spots, and a number of other potential opportunities, can deliver value to consumers, to our customers, and to our shareholders."
Outlook The Company is forecasting net sales of approximately $105 million for its first fiscal quarter ending April 30, 2009, compared to $75.4 million in last year's first fiscal quarter. The Company is also forecasting a net loss of $8.0 million to $8.8 million, or between $0.48 and $0.53 per share, compared to a net loss of $6.9 million, or $0.42 per share, in last year's first fiscal quarter.
The first quarter historically results in seasonal losses. The Company also noted that results this year include the operation of the Wilsons retail outlet stores that were not owned during the first quarter last year. Similar to our wholesale outerwear businesses, the outlet store business is also subject to seasonal losses in the first quarter.
Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said, "We continue to be in a strong competitive and strategic position, despite the difficult market environment. Our licensed and non-licensed segments had another good year. However, we were required to record an impairment charge under applicable accounting rules primarily as a result of our market capitalization declining to a level below our book value.
Notwithstanding these required charges, our cash flow remains strong and we believe our portfolio of brands has good long-term growth potential. Our financial results for the year, excluding the impairment charges, speak to our excellent value proposition and our high degree of diversification. Additionally, we have a healthy balance sheet, adequate availability under our credit line, and a business philosophy and corporate culture that enables us to succeed even in difficult times like these."
Mr. Goldfarb continued, "We have recently taken a variety of actions to improve our financial performance, including additional reductions in personnel, reductions in executive and board compensation, other expense reductions, and a careful streamlining of our operations to maximize our potential in what may be a prolonged, difficult consumer environment. At the same time, we intend to continue to invest in the areas of our business that we expect will grow."
Mr. Goldfarb concluded, "There are several bright spots in our business at the moment, including dresses, which continue to book and sell-through well, and an excellent early performance from our first shipments of Calvin Klein women's sportswear. We believe that these bright spots, and a number of other potential opportunities, can deliver value to consumers, to our customers, and to our shareholders."
Outlook The Company is forecasting net sales of approximately $105 million for its first fiscal quarter ending April 30, 2009, compared to $75.4 million in last year's first fiscal quarter. The Company is also forecasting a net loss of $8.0 million to $8.8 million, or between $0.48 and $0.53 per share, compared to a net loss of $6.9 million, or $0.42 per share, in last year's first fiscal quarter.
The first quarter historically results in seasonal losses. The Company also noted that results this year include the operation of the Wilsons retail outlet stores that were not owned during the first quarter last year. Similar to our wholesale outerwear businesses, the outlet store business is also subject to seasonal losses in the first quarter.
G-III Apparel Group Ltd
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