G-III Apparel Group F4Q07 (Qtr End 1/31/08) Earnings Call Transcript

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2008-03-31 17:16:07.0

Tags: G-III Apparel Group Ltd.

Question-and-Answer Session

Operator

(Operator Instructions) We will go first with Jim Duffy with Thomas Weisel.

Jim Duffy - Thomas Weisel Partners

Thank you. A question for you -- what do you consider to be the organic growth rate as you look back to the past year and for the quarter? And just help me understand how you get to that calculation.

Neal S. Nackman

You know, I think the acquisitions -- our historical acquisitions of Marvin Richards and Winlit, those are fully integrated. We certainly include those in the core growth. If you were to -- I guess the only thing that we would really exclude would be the [Storlo] acquisition, which was about $40 million of our volume this year. But without the [Storlo] we are probably looking at about a 12% core growth for this past year.

Jim Duffy - Thomas Weisel Partners

Okay. And then as you speak to the -- your channel partners, what are you hearing from them as they think about open-to-buy planning? They’ve been clear on conference calls with Wall Street that they are planning things more conservatively. How are they communicating that to you? Are they asking you to take more inventory risk? Any color commentary there would be helpful. Thanks.

Morris Goldfarb

Well, clearly we get the same information that you are reading and this will be a difficult environment. But if our order book is any indication of what the future is going to bring, our order book is up significantly. That includes both the organic and the new start-ups and acquisitions.

What I believe retailers are doing, they are concentrating on their core vendors and eliminating some of the secondary and third tier vendors, so we are the beneficiary of all of that. Our performance last year was very good and in most cases, all the ones that are significant in my mind, our order book has increased rather than what we are reading out there today.

Jim Duffy - Thomas Weisel Partners

Remind at what stage you are at for the order book for outerwear.

Morris Goldfarb

Excuse me?

Jim Duffy - Thomas Weisel Partners

The order book for outerwear -- what stage are you in kind of --

Morris Goldfarb

I would say we are well ahead of last year, if that’s what you are asking. But we have in excess of 50% of the year booked, 50% of the planned year book and that, having just two months under our belt with a difficult environment, we applaud our associates for having accomplished that.

 

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