NEW YORK — G-III Apparel Group Ltd. on Tuesday reported a wider first-quarter loss than a year ago, partly because of the results at companies the firm acquired last year.
For the three months ended April 30, the loss was $8.9 million, or 72 cents a share, from $4.7 million, or 43 cents, in the same year-ago quarter.
The higher loss was influenced by the inclusion of results from Marvin Richards Ltd. and Winlit Group, as well as by higher interest expenses and depreciation and amortization costs connected with the acquisitions. G-III in July 2005 acquired the stock of privately held firms Marvin Richards Ltd. for $19.2 million and certain assets from Winlit Group Ltd. for $7.3 million. Sales for the quarter rose 4.5 percent to $14.4 million from $13.8 million.
“This was an important quarter for us,” Morris Goldfarb, chief executive officer, said in a statement. “We built our order book at a solid pace and continued to execute our new initiatives. We are well positioned for the upcoming fall season and are excited by the broad-based strength evident in our business.”
The new initiatives include Calvin Klein women’s suits and dresses and Sean John women’s sportswear, as well as urban young men’s and boys’ sportswear under Wal-Mart’s Exsto brand, he said.
The company is forecasting a loss of 30 cents to 35 cents per share for the second quarter ending July 31. Last year’s second-quarter loss was 3 cents a share. Had the company acquired Marvin Richards and Winlit as of February 2004, the pro forma second-quarter loss last year would have been 41 cents, the company said. G-III reaffirmed previous guidance for the full fiscal year ending Jan. 31, 2007, of diluted net income per share of 58 cents to 62 cents, compared with 58 cents in fiscal year 2006.