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G-III Apparel Group Q1 net sales increase 16 percent

For the quarter ended April 30, 2017, G-III reported net sales increase of 16 percent to 529 million dollars compared to 457.4 million dollars in the year-ago period. The company reported a net loss of 10.4 million dollars or 0.21 dollars per share, compared to net income of 2.8 million dollars or 0.06 dollar per diluted share, in the prior year's comparable period.

"Our wholesale business continues its strong growth. Offsetting our strong wholesale performance were the previously forecasted losses with respect to our own retail stores and the development of the Donna Karan business," said Morris Goldfarb, G-III's Chairman and CEO in a statement, adding, "We are approaching an inflection point for the Donna Karan business where our efforts are expected to yield profitable results for this business in the second half of this fiscal year."

G-III raises Fy18 revenue and net income guidance

On an adjusted basis, excluding professional fees and severance of 1.1 million dollars related to the acquisition of Donna Karan International and non-cash imputed interest expense of 1.4 million dollars related to the note issued to seller as part of the consideration for the acquisition of DKI, equal to 0.03 dollar per share, non-GAAP net loss per share was 0.18 dollar compared to net income per share of 0.06 dollar in the prior year's comparable period.

The company today increased its prior guidance for the full fiscal 2018 year ending January 31, 2018. The company now expects net sales of approximately 2.76 billion dollars and net income between 52 million dollars and 57 million dollars or between 1.04 dollars and 1.14 dollars per diluted share. The company previously forecasted net sales of approximately 2.73 billion dollars and net income between 40 million and 45 million dollars or between 0.80 dollar and 0.90 dollar per diluted share.

On an adjusted basis, excluding transitional expenses and imputed interest expense, the company is forecasting non-GAAP net income between approximately 60 million and 65 million dollars or between 1.20 dollars and 1.30 dollars per diluted share. The company's previous forecast was for non-GAAP net income between approximately 49 million and 54 million dollars or between 0.99 dollar and 1.09 dollars per diluted share.

The company is now forecasting projected full-year adjusted EBITDA for fiscal 2018 between 178 million dollars and 186 million dollars compared to adjusted EBITDA of 148.1 million dollars in fiscal 2017 and compared to its previous forecast between 162 million and 171 million dollars. This adjusted EBITDA guidance includes a forecasted full-year operating loss of approximately 11 million dollars associated with the Donna Karan business.

For the second fiscal quarter ending July 31, 2018, the company is forecasting net sales of approximately 520 million dollars and a net loss between 15 million dollars and 20 million dollars or between 0.30 dollar and 0.40 dollar per share. This forecast compares to net sales of 442 million dollars and a net loss of 1.3 million dollars or 0.03 dollar per share, reported for the second quarter of fiscal 2017.

On an adjusted basis, excluding transitional and imputed interest expenses, the company is forecasting a second quarter non-GAAP net loss between 12 million dollars and 17 million dollars or between 0.24 dollar and 0.34 dollar per share.

Picture:DKNY website

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