Fri. Nov 15th, 2019

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G-III Apparel Group, Ltd. Declares 2nd-Quarter Fiscal 2k20 Results

3 min read

— Net Sales Incline 3.10% for 2nd-Quarter to $644.00M —

— Net Sales for the Wholesale Segment Incline 8.10% for 2nd-Quarter to $588.60M

G-III Apparel Group, Ltd. (NasdaqGS: GIII) recently stated operating results for the 2nd-quarter of fiscal 2k20 finished July 31, 2k19.

Net sales for the 2nd-quarter finished July 31, 2k19 raised 3.10% to $643.90M from $624.70M in the similar duration last year. The Company stated GAAP net income for the 2nd-quarter of $11.10M, or $0.230 for each diluted share, contrast to $10.10M, or $0.200 for each diluted share, in the previous year’s comparable duration.

Non-GAAP net income for each diluted share was $0.230 for the 2nd-quarter of this year contrast to $0.220 in the similar duration previous year. Non-GAAP net income for each diluted share excludes (i) non-cash imputed interest cost of $1.30M in this quarter related to the note issued to seller (the “Seller Note”) as part of the consideration for the acquisition of Donna Karan International contrast to $1.20M in the 2nd-quarter last year and (ii) a $1.40M gain on lease terminations in the current quarter. There was no aggregate effect of these exclusions in the 2nd-quarter of this year and an effect of $0.020 for each diluted share in the similar duration previous year.

Outlook

G-III Apparel Group recently issued revised guidance for the fiscal year ending January 31, 2k20 that incorporates the expected impact of the additional tariffs implemented effective September 1, 2k19 and expected to be implemented later this year. Prior guidance issued previous quarter incorporated the effect of tariffs in effect at that time.

For fiscal 2k20, the Company is now forecasting net sales of about $3.30B and net income between $154.00M and $159.00M, or between $3.10 and $3.20 for each diluted share. This compares to net sales of about $3.08B and net income of $138.10M, or $2.750 for each diluted share for fiscal 2k19.

The Company is anticipating non-GAAP net income for fiscal 2k20 between $156.00M and $161.00M, or between $3.150 and $3.250 for each diluted share. Non-GAAP guidance excludes (i) non-cash imputed interest cost of about $5.40M related to the Seller Note and (ii) a $2.20M gain on lease terminations. The aggregate effect of these exclusions is equal to $0.050 for each diluted share. This guidance compares to non-GAAP net income of $143.90M, or $2.860 for each diluted share, for fiscal 2k19. Non-GAAP results for fiscal 2k19 exclude non-cash imputed interest cost of $5.00M related to the Seller Note and asset impairments mainly related to leasehold improvements and furniture and fixtures at certain of our retail stores of $2.80M. The aggregate effect of these exclusions was equal to $0.110 in fiscal 2k19.

The Company is projecting full-year adjusted EBITDA for fiscal 2k20 between $295.00M and $300.00M contrast to adjusted EBITDA of $269.40M in fiscal 2k19.

For the 3rd-fiscal quarter ending October 31, 2k19, the Company is forecasting net sales of about $1.170B and net income between $90.00M and $95.00M, or between $1.850 and $1.950 for each diluted share. This forecast compares to net sales of $1.07B and net income of $94.00M, or $1.860 for each diluted share, stated in the 3rd-quarter of fiscal 2k19. Non-GAAP guidance excludes non-cash imputed interest cost related to the Seller Note of about $1.40M, or $0.020 for each share, in the 3rd-quarter of fiscal 2k20 and $1.20M, or $0.020 for each share, in the 3rd-quarter of last year. On an adjusted basis, apart from non-cash imputed interest, the Company is forecasting non-GAAP net earnings between $1.870 and $1.970 for each diluted share. This compares to non-GAAP net income of $1.880 for each diluted share in 3rd-quarter of previous year.

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