G-III Apparel Q4 Profits Rise

G-III Apparel Group, Ltd. reported net sales for the fiscal year ended January 31, 2014 increased 23 percent to $1.72 billion from $1.40 billion in the prior year. The sales growth was driven by contributions across the business, as well as from the G.H. Bass & Co. business that was acquired on November 4, 2013. The company reported GAAP net income for the fiscal year ended January 31, 2014, of $77.4 million, or $3.71 per diluted share, compared to $56.9 million, or $2.80 per diluted share, in the prior year.

On an adjusted basis, excluding expenses associated with the company’s acquisition of G.H. Bass & Co. and other potential transactions in the current fiscal year and expenses associated with the acquisition of Vilebrequin in the company’s prior fiscal year, Non-GAAP net income increased 28 percent to $3.74 per diluted share, from $2.92 per diluted share, in the prior fiscal year.

For the fiscal year ended January 31, 2014, adjusted EBITDA increased 29 percent to $147.1 million from $114.0 million in the prior fiscal year.

For the fourth quarter ended January 31, 2014, G-III reported net sales increased by 26 percent to a record level of $472.8 million from $375.3 million in the fourth quarter last year, also driven by broad strength across categories and tiers of distribution, as well as by the recently acquired G.H. Bass & Co. business. The company’s fourth quarter GAAP net income increased 62 percent to $13.1 million, or $0.62 per diluted share, from $8.1 million, or $0.40 per diluted share, in the fourth quarter of the prior year.

The Non-GAAP net income per share and adjusted EBITDA reported for the full fiscal 2014 year reflect the exclusion of expenses associated with the acquisition of G.H. Bass & Co. and other potential transactions and, for the full fiscal 2013 year, the exclusion of expenses and integration costs associated with the acquisition of Vilebrequin. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the company’s financial results for the full fiscal 2014 year prepared in accordance with GAAP.

Morris Goldfarb, G-III’s Chairman, Chief Executive Officer and President, said, “Fiscal 2014 was an excellent year. We continued to grow at a fast pace, executed our strategic plan for Vilebrequin, acquired G.H. Bass & Co. and produced both strong sales growth and increased profitability. We are pleased to have performed well throughout the year and finished up fiscal 2014 with record breaking results for sales and earnings.”

Mr. Goldfarb concluded, “We continue to create a variety of significant growth opportunities as we build our operating platforms. We believe that this systematic approach to growth and diversification, combined with cost discipline, positions us to continue our strategic expansion, organically and through acquisition, and drives excellent value to our shareholders.”

Outlook

Also today, G-III Apparel Group issued guidance for the fiscal year ending January 31, 2015. For fiscal 2015, the company is forecasting net sales of approximately $2.05 billion and net income between $85.2 million and $88.5 million, or between $3.95 and $4.10 per diluted share. The company is also projecting EBITDA for fiscal 2015 to increase to between $166.3 million and $171.5 million.

For the first fiscal quarter ending April 30, 2014, the company is forecasting net sales of approximately $346 million and a net loss between $2.0 million and $4.0 million, or between $0.10 and $0.20 per share. This compares to net sales of $272.6 million and net income of $1.1 million, or $0.05 per diluted share, in the first quarter of fiscal 2014. First quarter results will be negatively impacted by the G. H. Bass & Co. acquisition.

About G-III Apparel Group Ltd.
 
G-III Apparel Group Ltd. designs, manufactures, and markets women’s and men’s apparel primarily in the United States. It provides outerwear, dresses, sportswear, women’s suits, and women’s performance wear; and accessories, such as luggage, women’s handbags, small leather goods, and cold weather accessories. The company markets its apparel and other products under proprietary brands, including the Andrew Marc, Marc New York, Jessica Howard, Black Rivet, G-III, Eliza J, Marvin Richards, Siena Studio, Winlit, Andrew Marc, Marc New York, Vilebrequin, Black Rivet, G-III, G-III Sports by Carl Banks, and G-III for Her, as well as under various licensed and private label brands. It offers its products to department, specialty, and mass merchant retail stores, as well as upper tier stores and catalogs primarily in the United States, Canada, Europe, and the Far East. The company also distributes its products through its retail stores; and Wilson’s Leather, Andrew Marc, and Vilebrequin Marc Websites. As of January 31, 2013, it operated 218 retail stores, including 145 retail stores operated under the Wilsons Leather name, 4 retail stores under Andrew Marc brand, and 63 Vilebrequin retail stores. G-III Apparel Group Ltd. was founded in 1956 and is based in New York, New York.


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