G-III Apparel Group, LTD.

Ladies and gentlemen, thank you for standing by, and welcome to the G3 Apparel Group Third Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference to your speaker today, Neil Mackman, Chief Financial Officer.

Please go ahead, sir. Good morning, and thank you 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. I will now turn the call over to our Chairman and Chief Executive Officer, Morris Goldfarb.

Good morning, and thank you for joining us. Also joining me today are Sammy Aaron, our Vice Chairman and President, Wayne Miller, our Chief Operating Officer, Neil Nachman, our Chief Financial Officer, Jeff Goldfarb, our Executive Vice President, and Priya Trivedi, our Vice President of Investor Relations. During this past quarter, we realized significant sequential improvements in sales trends from our previous quarter. Retailers are figuring out how to manage through this pandemic, and consumers are buying to their adjusted lifestyle needs. Our merchants early on were able to identify the meaningful shift in consumer demand toward casual and comfortable clothing, as well as outdoor active attire. As an agile organization, our personnel are empowered to act quickly to redistribute resources and allocate purchasing dollars enabling us to have the right inventory at the right time for the right price. The distribution and logistics team have also been working tirelessly behind the scenes. They've done an incredible job keeping our warehouses operational throughout this difficult period of time. We're very fortunate to have an experienced and talented global team at G3. They've proactively met the challenges presented by this pandemic and continue to remain focused as we navigate through this unprecedented time. Even as this situation continues to evolve, we've elevated our position as a key supplier to our retailers, and our power brands continue to gain market share. Now, let's review the financial results for our third fiscal quarter ended October 31st. Net sales for the third quarter were $827 million, down 27% compared to last year's $1.13 billion. Net income for diluted share was $1.29 as compared to $1.97 last year. Our third quarter sales were driven by athleisure, the newly launched jeans lines for our three power brands, Calvin Klein, Tommy Hilfiger, and DKNY, as well as casual footwear and outerwear. We are tightly managing our inventory levels, which ended the third quarter down 29% compared to last year's third quarter. We remain comfortable with our inventory levels and category composition. Looking at this fiscal fourth quarter, we expect sales to be down approximately 30% compared to last year's fourth quarter. Let me discuss our exciting and fast-growing digital business where we are seeing strong and accelerating trends. We continue to focus and invest our resources to follow the consumer where they are shopping. To capture a larger portion of these digital sales, we're accelerating our global investments in best talent, systems, quick response distribution networks, as well as new and creative marketing. For the quarter, our digital sales penetration for our department store retailers approached approximately 40%, up from last year's approximately 23%. As for our own digital sites, we continue to experience increased demand with comparable sales increase in excess of 40%. In China, our digital business, although in its early stages, more than doubled in the quarter. We're really excited about the opportunities that lie ahead for us in our online business. Let's spend a few moments discussing the product categories that drove our sales and results for the quarter. As expected, we saw demand for athleisure accelerate across all our brands. Our replenishing programs continue to represent an important sales driver both in stores and online, as we're quickly able to restock product as demand takes shape. With three of our power brands, Calvin Klein, Tommy Hilfiger, and DKNY, we are known for providing some of the best fashion and technical design in athleisure and see the category as a very significant opportunity as we move forward. Our Calvin Klein, Tommy Hilfiger, and DKNY jeans collections are focused on casual and comfortable fashion across a wide variety of woven and knit tops and relaxed bottoms, leggings, and pants. We expect these lines to contribute to our growth and profitability and feel confident that each of these jeans lines can grow to be a $250 million business. Importantly, these lines have enabled us to become an important player in the denim space in a very short period of time. These businesses also allow us to engage and transact with a younger consumer and further align us with today's casual and active lifestyle. Speaking of active lifestyles, in anticipation of the colder weather and the outdoor lifestyle of consumers, We saw better demand for outerwear this quarter. For the fall and holiday season, our outerwear collections featured expanded offerings of transitional mid-weight styles featuring puffer jackets and layered pieces consisting of various stretch fabrics as well as fake furs. We believe our outerwear business is well positioned and consumers maintain an active lifestyle for the foreseeable future. As for sportswear, we again focused on casual offerings for the fall and holiday season. Our sportswear collections feature some great colors and prints, which show well on digital searches and lend themselves perfectly for gifting. Our product lines feature knit and woven tops and sweaters, as well as casual comfortable dresses and bottoms. Similar to the trends we saw during the second quarter, Our DKNY footwear business saw great sales and strong sell-throughs at retail, driven by relaxed styles, including canvas footwear and boots. We're also seeing strength in our Calvin Klein and DKNY handbag offerings. Here again, our collection has shifted toward softer styles, which complement our consumers' new lifestyles. Let me touch upon our growth plans for our Karl Lagerfeld Paris business. Now accelerated by the consumer's current demands, we've developed a collection of today's essential fashions that work well with the brand's Parisian chic DNA. This spring, we expect to launch Karl Lagerfeld Paris in approximately 75 new Macy's doors. In our retail segment, The closing of all of our GH Bass and Wilson's leather stores is almost complete. As we discussed in the past, operating losses in our retail segment relating to these stores were approximately $50 million last year. We expect the restructuring to eliminate a substantial portion of these losses. Our DKMY and Karl Lagerfeld Paris stores are performing better than we expected. We now operate 39 DKNY and 13 Karl Lagerfeld Paris locations. Although the stores are still traffic challenged, we've seen good increases in conversion. Our product is resonating with the consumers. Based on higher levels of conversion and cleaner inventories, we've been less promotional, resulting in increased AURs. Our store teams have also been incredibly innovative, working with customers and partnering with influencers to quickly adopt virtual selling techniques to offset traffic headwinds. We are seeing very strong results on our websites for both DKNY and Karl Lagerfeld Paris, a validation that these brands continue to resonate with consumers. We're on a path to profitability for our ongoing retail segment. In addition to the restructuring of our retail operations that we highlighted on our second quarter call, we streamlined our global wholesale headcount. Additionally, this past quarter, we further rationalized that cost base and are now on track to recognize annual savings of roughly $28 million. We're confident our current staffing is appropriately aligned to support our business needs. I'd like to take a moment to talk about our international opportunities. Our DKNY international business was down approximately 15% for the quarter and has held up better in spite of the pandemic. We continue to develop new accounts in Europe and the Middle East, a bright spot in China where we've just increased our ownership from 49% to 75% in our DKNY joint ventures. In the third quarter, we saw month-over-month recovery in comparable sales trends, which culminated in a positive 13% comp for the month of October. As I mentioned earlier, our digital business in China has increased substantially. We see significant opportunity to grow our DKNY business and engage with the local China market with a well-known global brand. We have a talented and experienced management team and great partners to help us achieve this growth. We're successfully navigating through what continues to remain one of the most challenging and fluid retail environments of our time. We feel good about our product assortments and our ability to work collaboratively with our strong vendor base and retailers to successfully design and provide great product. We're well positioned to complete the year in line with our expectations. I will now pass the call to Neil for a detailed discussion of our third quarter financial results.