G-III Apparel Group, Ltd. (NASDAQ:GIII) Q3 2020 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 08:30 am ET

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G-III Apparel Group, Ltd. (NASDAQ:GIII) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Neal S. Nackman

current forecast includes all current tariffs in place and does not anticipate any future changes. Our guidance assumes a weighted average diluted share count of approximately 49 million shares. We are projecting full-year adjusted EBITDA for fiscal 2020 of between $283 million to $288 million compared to $269 million in fiscal 2019.

We now anticipate the non-GAAP retail losses in our retail operation segment in fiscal 2020 will be approximately $10 million higher than the loss in fiscal 2019. This assumes low double-digit comp declines at both Wilsons and Bass for the full year.

DKNY retail sales are planned about flat to the prior year. As for DKNY's wholesale and licensing operations revenues are now planned to grow by approximately 25%. For our fourth fiscal quarter ending January 31, 2020 we are forecasting net sales of approximately $790 million and net income between $29 million and $34 million or between $0.60 and $0.70 per diluted share. This compares to net sales of $767 million and net income of $24 million or $0.48 per diluted share reported in the fourth quarter of fiscal 2019.

On an adjusted basis, we are forecasting non-GAAP net income of between $30 million and $35 million or between $0.62 and $0.72 per diluted share as compared to non-GAAP net income of $27 million or $0.55 per diluted share in the previous year's quarter.

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

Executive
Morris Goldfarb

Thank you, Neal. It's hard to believe but next week we will be ringing the closing bell at the Nasdaq Stock Exchange to commemorate our company's 30th anniversary as a publicly listed company.

However our existence stands much farther back to 1956 when my father Aaron Goldfarb created G-III as a leather coat manufacturing company. As you know, we now have expertise in most fashion product categories and the development of that expertise has been instrumental in our ability to expand our partnership with globally recognized power brands.

Our future growth continues to be anchored on strategically leveraging the strength of our global power brands, DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. We also have a world-class team there remains focused on continuing to grow our capabilities and elevate our position as a supplier of choice for our retail partners.

I'd like to thank our employees whose driving dedication helps us succeed in these challenging times. Finally, I'd like to thank all our shareholders and other stakeholders for their trust in us and their continued support. On behalf of myself and the G-III team, I want to wish everybody a happy holiday season. Thank you.

Operator, we're now ready to take some questions.