G-III Apparel Group Conference Call Highlights

reported its third quarter highlights on Wednesday. Shares of the company are up 14 percent. Below are some key highlights from its conference call.

• We're very pleased to report a record third quarter. • Outerwear is a big part of our third quarter and we shipped well. With great product and a good stretch of cold weather, we're seeing strong sell-through rates in retail. • Early cold weather across nearly the entire country helped get the outerwear season moving. Our best performance thus far are Calvin Klein, Andrew Marc, Guess?, Jessica Simpson, Kenneth Cole and Tommy Hilfiger. • The strength of the outerwear category extends to all tiers of distribution and given the strong early sell-throughs, our expectation is that, we will see a strong finish to our outerwear business in the fourth quarter. • Our sportswear businesses are all performing well. Our Calvin Klein better sportswear continues to be a key brand. • Even after having grown from almost nothing to now over $150 million in five years, it continues to post double-digit increases. • Calvin Klein performance has become an important business in the short amount of time we expect it to be in over 1,200 doors. • We expect continued growth with department stores and are beginning to test distribution in sporting goods chains as potential additional growth.

• Net sales for the quarter ended October 31, 2014 increased 21% to $812 million from $669 million in the same period last year. • Net sales of licensed products increased to $542 million from $505 million, driven by increased sales of Calvin Klein women's sportswear as well as Tommy Hilfiger and Guess? outerwear. • Net sales of non-licensed products increased to $180 million this quarter from $124 million in the comparable quarter of last year. • This increase is primarily related to an increase in net sales of private label programs. • Net sales of our retail operations increased to $130 million from $55 million in the prior year's third quarter, primarily attributable to the addition of net sales from our G.H. Bass business acquired in November 2013. • We also had an increase in Wilsons net sales from the addition of new stores and a comp store sales increases 6.4% for to the quarter. • Our overall gross profit percentage was 36.3% in the three-month period, compared to 33.9% in the prior year's period. • The gross profit percentage in our licensed product segment was 32.2% this quarter, compared to 30.9% in the comparable quarter in the prior year. • The gross profit percentage in our non-licensed product segment was 34.8%, compared to 34.7% in the prior year. • The gross margin percentage in our retail operations segment was 44.7%, compared to 50.3% in the prior year's period. • Net sales were $812 million up 21.5% compared to last year. • Excluding the Bass acquisition, our organic net sales increased to 11.9% compared to last year's quarter. • Our adjusted EBITDA increased by 16.6% to $119.7 million from $102.7 million last year. • Our adjusted net income per share was $3.09 compared to $2.88 last year an increase of 7.3%. • Our wholesale business for the quarter grew 12% compared to last year. • Outerwear which is roughly 60% of our wholesale sales in the quarter is off to a strong start for the season.

• We are now forecasting net sales of approximately $2.13 billion, up from our previous forecast of $2.11 billion. • This would be an increase of approximately 24% from the $1.72 billion of net sales in fiscal 2014. • We are - have - increasing our forecasted net income to be between $103 million and $106 million compared to a previous forecast range of between $90.6 million and $94 million. • We are now forecasting net income per share between $4.65 and $4.80 per diluted share, compared to our previous forecast range of between $4 and $4.15. • Our revised guidance include the effect of our issuance of 1,725,000 shares in a public offering completed in June of this year. • We estimated in the impact on our forecasted net income per diluted share to be approximately $0.16. • In addition, the revised guidance includes the items of nonrecurring other income included in our results for the third quarter equal to $0.45 per share net of taxes. • Excluding the other income reported in the third quarter, our revised guidance of non-GAAP net income per share is between $4.20 and $4.35, and that compares to non-GAAP net income of $3.74 per diluted share in fiscal 2014. • We are forecasting adjusted EBITDA for fiscal 2015 to grow between 20% and 24% to between $176 million and $181 million compared to $147 million in fiscal 2014.