G-III Apparel Group, Ltd. (NASDAQ:GIII) Q2 2020 Earnings Conference Call Transcript

Sep 05, 2019 • 08:30 am ET

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G-III Apparel Group, Ltd. (NASDAQ:GIII) Q2 2020 Earnings Conference Call Transcript

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Presentation
Executive
Neal S. Nackman

sales of approximately $3.3 billion. Net income between $154 million and $159 million, or between $3.10 and $3.20 per diluted share. This compares to net sales of $3.08 billion and net income of $138 million or $2.75 per diluted share in fiscal 2019. On an adjusted basis, excluding non-cash imputed interest expense of $5 million and a $2 million gain on lease terminations, we are anticipating non-GAAP net income between $156 million and $161 million or between $3.15 and $3.25 per diluted share compared to non-GAAP net income of $144 million or $2.86 per diluted share in the previous year. Our guidance continues to assume a weighted average diluted share count of approximately 50 million shares.

We are projecting full year adjusted EBITDA for fiscal 2020 between $295 million to $300 million compared to $269 million in fiscal 2019. We now anticipate the non-GAAP retail losses in our retail operations segment in fiscal 2020 will be approximately $5 million higher than the loss in fiscal 2019. This assumes a high single-digit comp declines at both Wilsons and Bass for the full year.

DKNY retail sales are planned about flat to the prior year as the average comp store count is down. As for DKNY wholesale and licensing operations, revenues are now planned to grow by approximately 25%. For our third fiscal quarter ending October 31, 2019, we are forecasting net sales of approximately $1.17 billion and net income between $90 million and $95 million or between a $1.85 and $1.95 per diluted share. This compares to net sales of $1.07 billion and net income of $94 million or $1.86 for diluted share reported in the third quarter of fiscal 2019.

On an adjusted basis, we are forecasting non-GAAP net income between $91 million and $96 million or between a $1.87 and $1.97 per diluted share as compared to non-GAAP net income of $95 million or $1.88 per diluted share in the previous year's quarter. And as for our retail operations, we are assuming a high single-digit comp decline in total for the quarter.

That concludes my comments. I will now turn the call back to Morris for closing remarks.

Executive
Morris Goldfarb

Thank you, Neal. Our winning formula for success is unwavering in what remains a difficult retail environment. Thanks to a world class team. We have a track record of being able to adapt and thrive in any environment. We will continue to strategically leverage the strength of our global power brands, DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld, through brand right design and development to create great commercial product. We continue to grow our capabilities and elevate our position as a supplier of choice for our retail partners.

Backed by our strong financial position, G-III remains poised to achieve significant growth over the next several years. I'd like to thank our shareholders, partners and stakeholders for their continued support.

Thank you, operator. We're now ready to take some questions.