G-III to expect strong spring season for Q1 of next year
G-III Apparel Group, Ltd. announced results for the three and nine month periods ended October 31, 2009.
For the three months ended October 31, 2009, net sales increased by 3.4% to $363.5 million from $351.6 million in the same quarter of last year. Net income for the three months ended October 31, 2009 increased by 12.2% to $32.3 million, or $1.87 per diluted share, compared to $28.8 million, or $1.68 per diluted share, in the prior year's period.
For the nine months ended October 31, 2009, net sales increased by 12.3% to $607.0 million from $540.5 million in the same period last year. Net income for the nine months ended October 31, 2009 increased by 25.5% to $22.7 million, or $1.33 per diluted share, compared to $18.1 million, or $1.07 per diluted share, in the same period last year.
Morris Goldfarb, Chairman and Chief Executive Officer, said, "Over the course of this year, we have worked hard to design and deliver great product, make our operations even more efficient and position our business for continued success. Our year to date results were driven by strong increases in our dress businesses led by Calvin Klein, as well as the strong start from our new Calvin Klein sportswear business."
Mr. Goldfarb continued, "We remain focused on diversifying our business and have invested to expand our capabilities and infrastructure for both the dress and sportswear categories, which we expect to be growth engines for us. We have taken advantage of our reach across every tier of distribution to seek out areas of strength in the market. We are taking market share, creating new opportunities and further developing both our licensed and company-owned brands."
"As we look forward, in the short term, we expect a good finish to the fiscal year and a strong spring season for the first quarter of next year. Longer term, we believe that we have an excellent opportunity to accelerate our strategic development, particularly in regards to our newer categories of business. We believe that continuing our present path of development will lead to sales and earnings growth in fiscal 2011 and excellent value creation for our shareholders," Mr. Goldfarb concluded.
For the full fiscal 2010 year ending January 31, 2010, the Company has revised its guidance and now expects net sales of approximately $790 million, compared to its prior guidance of net sales of approximately $770 million, net income in the range of $23.0 million to $23.7 million, compared to its prior guidance of net income in the range of $16.6 million to $18.4 million, and diluted net income per share between $1.31 and $1.35, compared to its prior guidance of diluted net income per share between $0.95 and $1.05. The Company is also now forecasting EBITDA for the fiscal year ending January 31, 2010 to increase approximately 36% to 40% from fiscal 2009 to a range of approximately $49.8 to $51.3 million compared to its prior guidance of EBITDA in the range of $40.2 million to $43.2 million. EBITDA should be evaluated in light of the Company's financial results prepared in accordance with US GAAP. A reconciliation of EBITDA to net income in accordance with US GAAP is included in a table accompanying the condensed financial statements in this release.
G-III Apparel Group Ltd