G-III Apparel Group, Ltd. Announces Fourth Quarter and Full-Year Fiscal 2008 Results

-- Net Sales for the Year Increased 21.5 % to $518.9 million --

-- Net Income for the Year Increased to $17.5 million, or $1.05
per diluted share, from $13.2 million, or $0.94 per diluted share --

-- Adjusted Net Income Per Diluted Share for the Year Increased to
$1.14 from $0.87 -

-- Adjusted Net Income Per Diluted Share for the Fourth Quarter
Increased to $0.15 from $0.03 --
NEW YORK--(Business Wire)--
G-III Apparel Group, Ltd. (Nasdaq: GIII) today announced operating
results for the fourth quarter and full-year of fiscal 2008.

For the fiscal year ended January 31, 2008, G-III reported net
sales increased by 21.5% to $518.9 million from $427.0 million last
year and net income per diluted share increased to $1.05 from $0.94
last year. There were 16,670,000 weighted shares outstanding for
fiscal 2008 compared to 13,982,000 for fiscal 2007.

For the three-month period ended January 31, 2008, G-III reported
that net sales increased by 30.2% to $128.7 million from $98.8 million
during the comparable period last year and net income per diluted
share increased to $0.06 from $0.03 during the comparable period last
year. There were 16,873,000 weighted average shares outstanding for
the three months ended January 31, 2008 compared to 14,954,000 for the
comparable period last year.

The Company noted that fourth quarter and fiscal 2008 results were
affected by three different non-recurring items:

-- The Company incurred a $3.0 million pre-tax charge in cost of
sales, equal to $0.11 per diluted share, to reflect losses
with respect to financing that the Company guaranteed related
to purchase commitments by one of its vendors. The vendor is
no longer in business.

-- The Company incurred a $720,000 pre-tax charge in cost of
sales, equal to $0.03 per diluted share, related to the
termination of the Sean John junior sportswear license.

-- The Company realized a pre-tax gain of $860,000 included in
selling general and administrative costs , equal to $0.05 per
diluted share, related to the reversal of expense reserves no
longer deemed necessary that were recorded in connection with
the December 2002 close-down of its Indonesian production
facility.

The prior year's results included the reversal of tax reserves of
approximately $950,000, equal to $0.07 per diluted share. Excluding
all of these non-recurring items, the Company had adjusted net income
per diluted share of $0.15 for the three-months ended January 31, 2008
compared to adjusted net income per diluted share of $0.03 during the
comparable period in fiscal 2007. For the fiscal year ended January
31, 2008, G-III's adjusted net income per diluted share was $1.14,
compared to adjusted net income per diluted share of $0.87 for fiscal
2007. A reconciliation of adjusted net income per diluted share to net
income per diluted share in accordance with GAAP is included in a
table accompanying the condensed financial statements in this release.

For the twelve-month period ended January 31, 2008, EBITDA
increased 17.0% to $37.8 million from $32.3 million. EBITDA should be
evaluated in light of the Company's financial results prepared in
accordance with GAAP. A reconciliation of EBITDA to net income in
accordance with GAAP is included in a table accompanying the condensed
financial statements in this release.

Morris Goldfarb, G-III's Chairman and Chief Executive Officer,
said, "We had a solid fourth quarter and finished fiscal 2008 on a
strong note. We saw good momentum in a number of our businesses,
including some of our outerwear fashion brands and also in
non-outerwear categories, particularly in our dress businesses. While
there is no question that the retail environment has been somewhat
challenging and is expected to remain that way, we are pleased with
what we have accomplished and with our outlook going forward."

Mr. Goldfarb continued, "In addition to our financial results, we
have made great progress in strategically positioning our business for
the future. Our acquisition last month of Andrew Marc provides us with
a sought-after luxury brand, an expanded mid-tier presence through the
Levi's and Dockers licenses, and opportunities for incremental
leverage and economies of scale. Perhaps more importantly, we believe
that the Andrew Marc brand is an exceptional one that will prove
capable of expansion into a number of additional product categories."

Mr. Goldfarb concluded, "As we look forward to fiscal 2009, we are
excited to continue our transformation to a business that can
ultimately be profitable all year-round. Never in our history have we
had such financial strength, so many growth opportunities, or the
depth of talent and experience that we enjoy at all levels of the
organization."

Outlook

The Company is forecasting net sales of approximately $60 million
for its first fiscal quarter ending April 30, 2008, compared to $35.1
million in last year's first fiscal quarter. The Company is also
forecasting a net loss of $7.7 million to $ 8.5 million, or between
$0.47 and $0.51 per share, compared to a net loss of $6.4 million, or
$0.42 per share, in last year's first fiscal quarter. The first
quarter historically results in seasonal losses and the increase in
the forecasted first quarter loss is attributable to our acquisition
of Andrew Marc, which experiences seasonality similar to the rest of
our business. We expect that the Andrew Marc acquisition will be
accretive for the full fiscal year ending January 31, 2009.

About G-III Apparel Group, Ltd.

G-III Apparel Group, Ltd. is a leading manufacturer and
distributor of outerwear and sportswear under licensed brands, private
labels and our own brands. The Company has fashion licenses, among
others, under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan,
Guess?, Jones New York, Nine West, Ellen Tracy, House of Dereon, IZOD,
Tommy Hilfiger, Levi's and Dockers brands and sports licenses with the
National Football League, National Basketball Association, Major
League Baseball, National Hockey League, Touch by Alyssa Milano and
more than 100 U.S. colleges and universities. G-III works with leading
retailers in developing product lines to be sold under its own
proprietary private labels. Company-owned brands include, among
others, Andrew Marc, Marc New York, Marvin Richards, G-III, Jessica
Howard, Eliza J., Industrial Cotton, Black Rivet, Siena Studio,
Colebrook, G-III by Carl Banks, Winlit, NY 10018 and La Nouvelle
Renaissance.

Safe Harbor Language

Statements concerning G-III's business outlook or future economic
performance, anticipated revenues, expenses or other financial items;
product introductions and plans and objectives related thereto; and
statements concerning assumptions made or expectations as to any
future events, conditions, performance or other matters 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 product, reliance on foreign manufacturers, the
nature of the apparel industry, including changing customer demand and
tastes, seasonality, customer acceptance of new products, the impact
of competitive products and pricing, dependence on existing
management, possible disruption from acquisitions and general economic
conditions, as well as other risks detailed in G-III's filings with
the Securities and Exchange Commission. G-III assumes no obligation to
update the information in this release.

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*T
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
(NASDAQ:GIII)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)

Three Months Ended Twelve Months Ended
----------------------- -----------------------
1/31/08 1/31/07 1/31/08 1/31/07
----------- ----------- ----------- -----------
Net sales $ 128,676 $ 98,842 $ 518,868 $ 427,017
Cost of sales 98,757 73,151 379,417 311,470
----------- ----------- ----------- -----------
Gross profit 29,919 25,691 139,451 115,547
Selling, general and
administrative
expenses 26,650 21,791 101,669 83,258
Depreciation and
amortization 1,292 1,131 5,427 4,431
----------- ----------- ----------- -----------
Operating profit 1,977 2,769 32,355 27,858
Interest and financing
charges, net 854 1,789 3,158 6,362
----------- ----------- ----------- -----------
Income before income
taxes 1,123 980 29,197 21,496
Income tax expense 56 462 11,707 8,307
----------- ----------- ----------- -----------
Net income $ 1,067 $ 518 $ 17,490 $ 13,189
=========== =========== =========== ===========
Income per common
share:
Basic $ 0.06 $ 0.04 $ 1.09 $ 1.00
=========== =========== =========== ===========
Diluted $ 0.06 $ 0.03 $ 1.05 $ 0.94
=========== =========== =========== ===========

Weighted average
shares outstanding:
Basic 16,424,000 14,093,000 16,119,000 13,199,000
Diluted 16,873,000 14,954,000 16,670,000 13,982,000
*T

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*T

Balance Sheet Data (in thousands): At Jan. 31, At Jan. 31,
2008 2007
----------- -----------
Cash $ 38,341 $ 12,026
Working Capital 120,996 81,858
Inventory 59,934 38,111
Total Assets 236,400 173,530

Total Shareholders' Equity $ 173,874 $ 115,642
*T

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*T
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO ACTUAL NET INCOME
(in thousands)
(Unaudited)

Twelve Months Twelve Months
Ended Ended
January 31, 2008 January 31, 2007
---------------- -----------------
EBITDA, as defined $ 37,782 $ 32,289
Depreciation and amortization 5,427 4,431
Interest and financing charges, net 3,158 6,362
Income tax expense 11,707 8,307
---------------- -----------------
Net income $ 17,490 $ 13,189
================ =================
*T

EBITDA is a "non-GAAP financial measure" which represents earnings
before depreciation and amortization, interest and financing charges,
net, and income tax expense. EBITDA is being presented as a
supplemental disclosure because management believes that it is a
common measure of operating performance in the apparel industry.
EBITDA should not be construed as an alternative to net income as an
indicator of the Company's operating performance, or as an alternative
to cash flows from operating activities as a measure of the Company's
liquidity, as determined in accordance with generally accepted
accounting principles.

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*T
RECONCILIATION OF ADJUSTED NET INCOME PER SHARE TO ACTUAL NET
INCOME PER INCOME SHARE
(Unaudited)

Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
January 31, January 31, January 31, January 31,
2008 2007 2008 2007
------------ ------------ ------------- -------------
Adjusted net
income per
share, as
defined $ 0.15 $ 0.03 $ 1.14 $ 0.87

Vendor guaranty
charge (0.11) (0.11)

Contract
termination
charge (0.03) (0.03)

Expense reserve
reversal 0.05 0.05

Reversal of tax
reserves 0.07

-----------------------------------------------------
Net income per
share $ 0.06 $ 0.03 $ 1.05 $ 0.94
=====================================================
*T

In addition to providing financial results in accordance with
GAAP, this press release provides non-GAAP adjusted net income per
diluted share that excludes certain non-recurring items and is
therefore not calculated in accordance with GAAP. Management believes
that this non-GAAP financial measure provides useful supplemental
information to both management and investors by excluding items that
the Company believes are not indicative of the Company's core
operating results. The Company believes that this non-GAAP information
enhances management's and investors' ability to evaluate the Company's
net income per diluted share as well as to compare it with historical
net income per diluted share. This non-GAAP financial information
should be considered in addition to, and not as a substitute for or as
being superior to, net income or other measures of financial
performance prepared in accordance with GAAP. A reconciliation of this
non-GAAP information to the Company's results in accordance with GAAP
is included in the above table.

For G-III Apparel Group, Ltd.
Investor Relations:
James Palczynski, 203-682-8229
or
G-III Apparel Group, Ltd.
Wayne S. Miller, 212-403-0500
Chief Operating Officer

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