G-III Apparel Group, Ltd. (NASDAQ:GIII) Q3 2020 Earnings Conference Call - Final Transcript
Dec 04, 2019 • 08:30 am ET
Hello and welcome to the G-III Apparel Group Third Quarter Fiscal 2020 Earnings Conference Call. My name is Sheryl and I will be your operator for today's call. [Operator Instructions] Please note that this conference call is being recorded.
I will now turn the call over to the company's CFO, Neal Nackman. Sir, you may begin.
Neal S. Nackman
Thank you. Good morning. Thanks for joining us. Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees and actual results may differ materially from those expressed or implied in forward-looking statements.
Important factors that could cause actual results of operations or the financial condition of the company to differ are discussed in the documents filed by the company with the SEC. The company undertakes no duty to update any forward-looking statements. In addition, during the call, we will refer to non-GAAP net income, non-GAAP net income per share and to adjusted EBITDA, which are all non-GAAP financial measures. We have provided reconciliations of these non-GAAP financial measures to GAAP measures in our press release, which is also available on our website.
I will now turn the call over to our Chairman and Chief Executive Officer, Morris Goldfarb.
Good morning, and thank you for joining us. With me today are Sammy Aaron, our Vice Chairman and President; Wayne Miller, our Chief Operating Officer; Neal Nackman, our Chief Financial Officer; Jeff Goldfarb, Executive Vice President; and Priya Trivedi, Vice President of Investor Relations.
This past quarter we continued to achieve good growth in our wholesale business notwithstanding the challenging retail and geopolitical environment. We exceeded our bottom line plan for the quarter as we maintained good momentum in our wholesale business.
Our gross margins came in better than planned. Our merchants did a good job managing product costs. We benefited by accelerating inventory receipts ahead of tariffs and obtaining some great support from our vendor resources in China.
Here are the highlights of our third quarter results. Third quarter net sales were up 5% to $1.13 billion. Our third quarter wholesale net sales increased 6% to $1.07 billion. Our third quarter non-GAAP net income per diluted share came in ahead of plan at $1.99 compared to $1.88 in the last year's third quarter.
Now let me provide you with a brief update on our own retail operations. By year-end we will have eliminated nearly 150 locations or 40% of our Bass and Wilsons store base as compared to just three years ago. However, as we've highlighted on our second quarter call, we're planning to move faster and deeper on store closures and remain committed to eliminating the retail losses as swiftly and efficiently as possible.
We are working diligently with our landlords and external advisors to find an appropriate solution and believe we will have a resolution with our landlords by the time we report our year-end results