Earnings Call Excerpt
G-III Apparel Group Ltd. (GIII)
F2Q09 Earnings Call
September 9, 2008 4:30 pm ET
Executives
Morris Goldfarb - Chairman, Chief Executive Officer
Neal Nackman - Chief Financial Officer, Treasurer
Wayne Miller - Chief Operating Officer, Secretary
Analysts
Analyst for Eric Beder - Brean Murray
Jody Kane - Sidoti & Company
Susan Sansbury - Miller Tabak
Todd Slater - Lazard Capital
Jim Duffy - Thomas Weisel Partner
Presentation
Operator
Welcome to the G-III Apparel Group second quarter earnings 2009 conference. (Operator Instructions) I’d like to turn the conference over to Neal Nackman, Chief Financial Officer of G-III Apparel Group.
Neal Nackman
Before we get started I want to remind you of the company’s Safe Harbor language. Some statements made today on the call are forward-looking statements as that term is defined under the Federal Securities Laws.
Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to reliance on licensed products, reliance on foreign manufacturers, the nature of the apparel industry including changing customer demands and tastes, customer concentration, seasonality, customer acceptance of new products, weakness in the retail sector, risks related to the operation of a retail chain, the impact of competitive products and pricing, dependence upon existing management, as well as business disruption from acquisitions and general economic conditions, as well as other risks detailed in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update information in this call.
I will now turn the call over to our Chairman and Chief Executive Officer, Morris Goldfarb.
Morris Goldfarb
With me today are Wayne Miller, our Chief Operating Officer and Neal Nackman our Chief Financial Officer. I will start with some of the financial highlights from the second quarter with Neal Nackman providing more details in a few minutes.
Net sales for the quarter were $113.5 million compared to $84 million in last year’s comparable quarter. The increase in net sales was due to the strength of our dress business and sales by our newly acquired Andrew Marc and Wilsons Outlet division. Our net loss for the quarter was $3.9 million compared to the year ago loss of $884,000.
This increase was primarily the result of the seasonal losses of the Andrew Marc business acquired in 2008 and the Wilsons Outlet Retail business acquired in July 2008. The loss was inline with our expectations. We’re excited about the strategic direction of our business. With the acquisition of Wilsons 116 outlet stores, we’ve realized one of our strategic milestones. Besides now having over $100 million outlet division Wilsons will be our foundation for future retail expansion.
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