New York, United States –  G-III Apparel Group, Ltd.  announced operating results for the second quarter of fiscal 2014.

For the quarter ended July 31, 2013, G-III reported that net sales increased by 21% to $304.2 million from $251.5 million in the year-ago period.

• Net Sales Increase 21% to $304.2 Million
• Exceeds Guidance with Second Quarter Net Income Per Diluted Share of $0.17
• Full Year Guidance for Net Income Per Diluted Share Increases to Between $3.30 and $3.40

The Company’s net income for the second quarter was $3.6 million, or $0.17 per diluted share, compared to net income of $1.4 million, or $0.07 per diluted share, in the prior year’s comparable period. Net income in the prior year’s comparable period included $1.8 million of expenses associated with the Company’s acquisition of Vilebrequin, equal to $0.06 per share, net of taxes.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We had an excellent second quarter. The results were driven by broad-based strength across many categories and brands in our portfolio. We believe that we are executing particularly well in a number of key areas, including design and merchandising, which positions us to deliver strong performance for the remainder of the year.”

Mr. Goldfarb concluded, “We have a powerful opportunity to continue to diversify our business, further penetrate key categories and layer on promising new organic growth initiatives, such as our multi-category launch of the Ivanka Trump collection and the rollout of full-priced Wilsons stores, which is still in a test mode. Our most recent acquisition, Vilebrequin, is performing well and provides us with a premier status brand in a new category. We believe that by focusing on the right mix of key, strategic opportunities and maintaining a disciplined approach to investment, we can continue to drive superior value to the full range of our constituents, including our customers, consumers, partners and shareholders.”

Outlook

The Company revised its prior guidance for the full fiscal year ending January 31, 2014. The Company is now forecasting net sales of approximately $1.61 billion and net income between $68.6 million and $70.6 million, or a range between $3.30 and $3.40 per diluted share, compared to its previous guidance of net sales of approximately $1.57 billion and net income between $66.3 million and $68.4 million, or a range between $3.20and $3.30 per diluted share.

The Company is now projecting adjusted EBITDA for fiscal 2014 to increase between 16% and 19% to between $132.3 million and $135.4 millioncompared to its previous guidance of adjusted EBITDA between approximately $129.5 million and $132.8 million. EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with U.S. GAAP. A reconciliation of GAAP net income to adjusted EBITDA is included in a table accompanying the condensed financial statements in this release.

For its third fiscal quarter ending October 31, 2013, the Company is forecasting net sales of approximately $620.0 million compared to $543.5 millionin the comparable quarter last year. The Company is also forecasting net income for the third fiscal quarter between $52.2 million and $54.2 million, or between $2.52 and $2.62 per diluted share, compared to net income of $48.3 million, or $2.37 per diluted share, in last year’s third quarter. Net income in the prior year’s comparable period included $1.9 million of expenses associated with the Company’s acquisition of Vilebrequin, equal to $0.06 per share, net of taxes.

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Source: G-III Apparel Group