G-III Apparel Group, LTD.

Good day, and thank you for standing by. Welcome to the G3 Apparel Group third quarter fiscal 2022 earnings call. At this time, I'll participate in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Neil Nachman, CFO. Please go ahead.

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 is Neil Nachman, our Chief Financial Officer. I'm pleased to report that the momentum in the first half of the year continues into the second half. For our third quarter of fiscal 2022, we delivered outstanding results with both our top and bottom line exceeding our guidance. Our world-class team continues to deliver the right product at the right time to meet significant consumer demand and, importantly, capture additional market share. We continue to maintain flexibility navigating supply chain disruptions. Given the significant demand we're seeing across our brands, combined with our strong order book, we have the confidence to raise our full-year fiscal 2022 guidance. We now expect to deliver the highest annual net income per diluted share in our company's history, exceeding pre-pandemic fiscal 2020 results by approximately 26%. We expect to enter the new fiscal year in our strongest financial position, affording us the flexibility to invest in our future growth and continue to elevate our position as a global leader in fashion. Now, let's review the third quarter fiscal 2022 results. Net sales for the third quarter were ahead of our guidance at approximately $1.02 billion. This represented an increase of 23 percent compared to last year's third quarter net sales of $827 million. This increase in our third quarter net sales was driven by our wholesale segment, where net sales for the quarter were $1.01 billion, up 29 percent compared to $783 million in last year's third quarter. Importantly, Third quarter net sales for our wholesale segment are quickly approaching pre-pandemic levels, down only 5 percent from third quarter net sales two years ago. Third quarter net income was $2.16 per diluted share, which exceeded the midpoint of our guided range by 27 percent and is our highest quarterly diluted net income per share in our history. This compares to a net income of $1.29 for diluted share in third quarter last year and net income of $1.97 for diluted share in the third quarter two years ago. Now let's walk you through some of our third quarter highlights. Our inventory levels are in good position and we continue to experience strong selling at retail across the full range of our casual offerings including outerwear, athleisure, sportswear, jeans, as well as dresses and career wear. Customer response to our fall fashion collections has been strong, and we're well positioned for the holiday season with gifting programs. With robust momentum in each of these categories, we believe our business will continue to grow, and we have opportunity for market share gains across these businesses. Out of wear is a key business for us, and in the third quarter, as we expected, it performed well with three leading categories. Comfort casual product that supports an active lifestyle, transitional or layering pieces, and an assortment of soft shell jackets. In athleisure and casual sportswear, we focused on a cleaner aesthetic, new fits, and a collection of key layering pieces to transition into colder weather. Comfort, performance, and functionality drive the athleisure business, while polished pieces anchor the casual sportswear business. Jeans across our power brands again exceeded our expectations and have become a significant contributor to our overall results. Along with denim bottoms, These collections offer a broad assortment of tops, soft shirts, sweaters, blazers, and casual dresses that have become an important wardrobe builder for a younger customer to build a complete outfit. Our DKNY and Karl Lagerfeld Paris footwear business far exceeded our expectations with net sales almost 50% higher than pre-pandemic levels. Handbags for DKNY, Calvin Klein, and Karl Lagerfeld Paris also outperformed and are approaching pre-pandemic levels with AURs in both categories up solid double digits. The demand that began in the second quarter for our dresses and career wear accelerated, and sales at retail surpassed pre-pandemic levels with strong self-risk. Karl Lagerfeld Paris, its business is outpacing our expectations. Pre-pandemic, the brand's total net sales were $135 million, and this year, the total sales footprint is to be approximately $175 million. Last year, we lost Lord & Taylor, one of the brand's largest customers. But we were able to expand the collection at Macy's, which has been incredibly successful and rapidly growing. We're also adding 10 retail stores this year. We believe Karl Lagerfeld Paris is on a clear path to achieving annual net sales of $500 million over the next several years. Digital remains a key priority. we're investing to capture and accelerate growth to become a best-in-class omni-channel organization. Compared to two years ago, sales on our partner sites increased over 45% and over 60% on our own sites. In China, digital sales are now larger than store sales, and Vilbercan's digital sales were also up compared to two years ago. We remain focused on several digital priorities. Improvements to our digital platforms for DKNY and Karl Lagerfeld Paris are progressing well. With the first phase complete, the new look and feel of the sites has a modern aesthetic that customers are responding to. In the next phase, our replatforming will add additional enhancements to technical operations to allow seamless navigation of these sites. This is expected to boost performance and productivity next year. We continue to invest in improving our technological and operational capabilities with data analytics, best-in-class reporting tools, and building our internal team. We're creating operational efficiencies that standardize workflow across our brands to become more agile, efficient, and effective. We're also building out our capabilities to grow our presence on leading pure play global retail sites, including Amazon, Zalando, and Fanatics. These investments are already providing internal and external insights into customer behavior and are actionable and are increasing our ability to make better, faster, data-driven decisions. Our direct-to-consumer warehousing and shipping is transitioning to our new logistics partner, Geotis, which will drive operational efficiencies. In marketing, we're increasing our investments with a focus on digital to drive qualified new and younger audience to our brands through a combination of paid media, celebrity seeding, and influencer marketing. DKNY's campaign features diverse and relatable influencers, and the Karl Lagerfeld Paris campaign highlights our exciting new Empre ski collection. Both are leveraging across our digital ecosystem with a multi-pronged approach that is building momentum into the holiday season. Our international business for DKNY is growing. We're thoughtfully expanding our omnichannel footprint with wholesale partner-operated stores and territories in addition to pure play sites. In Europe, sales are back to pre-pandemic levels, even with restrictions in place. We entered Turkey and Israel through wholesale distribution and will open two new partner-operated stores for Donna Karan this quarter, one in Saudi Arabia, one in Riyadh, with a third to follow next year in Kuwait. In China, we expect to double our sales this year as compared to two years ago. Vilbrecan registered another strong quarter with positive retail sales growth compared to pre-pandemic levels and double-digit growth in the U.S. We celebrated the 50th anniversary of the brand with exclusive collaborations including Palm Angels, and Space Jam, the movie, creating increased customer interest. This status brand expanded offering across lifestyle and athleisure categories are driving sales, especially in warm weather destinations, which are becoming primary residences. The wholesale order book, including distributors operating Vilbre Can stores, is strong, setting the stage for accelerated growth into next year. We believe there continues to be a meaningful opportunity to expand the brand. Licensing our own brands enables us to grow into additional lifestyle categories and international markets. This generates a capital-light royalty stream that is highly accretive and an important profit driver. We've created solid licensing royalty income based with best-in-class partners in categories like fragrance, kids, watches, intimates, and sleepwear. For DKNY and Donna Karan, we have approximately 25 licenses, and the brand's total sales at retail are approaching $2 billion. This quarter, we announced that Interparfums, will take over their fragrance license with much more ahead. We'll continue to leverage our expertise in these partnerships to expand our brand's presence across the portfolio. Now let's look at our retail operations. Trends continue to improve in-store, online, and through our virtual selling programs, which we consider a third leg to our omni-channel operating model. As I mentioned on last quarter's call, we're opening some new stores with good economic terms. This quarter, we opened four new Karl Lagerfeld Paris stores, which are off to a great start. We expect to end the year with 36 DKNY and 23 Karl Lagerfeld Paris stores. As we thoughtfully expand the omnichannel footprint, we expect to be able to further leverage our expense base. Now, let me discuss a few initiatives we're working on with significant potential ahead. We just completed the acquisition of Sonia Ricciel, an iconic luxury European fashion brand with incredible global awareness. We're in the early stages of the relaunch, which leverages the back-end infrastructure of our European operations. Our first collections across multiple categories are expected to be available next fall in France, then rapidly expand throughout Europe, and then globally. We believe in the untapped potential for this brand. Another initiative we've been working on leverages a brand we already own, GH Bass. There's significant value in its 150-year-old rich legacy, which provides a licensing royalty stream. Additionally, we're harnessing the brand to develop incremental businesses and just launched Bass Outdoor. The collection capitalizes on the secular shift toward an active outdoor lifestyle by offering practical, innovative, and sensibly designed footwear and apparel for men and women. It launched this past quarter in 150 Macy's doors on macys.com. and Bass.com, and it's off to a good start. With this launch, combined with our Karl Lagerfeld Paris men's business, we're developing a men's apparel design and production capabilities which present an additional growth avenue. Both Sonia Riquel and Bass Outdoor represent untapped opportunities for growth in our wholesale business as we expand distribution for these brands. Summing up the third quarter, based on the continued strength of our business, our flexibility to adjust as needed to capitalize on market share opportunities, and incredibly strong order book, we're raising our guidance for the full 2022 fiscal year. We now anticipate full fiscal year net sales to be approximately $2.77 billion. Wholesale net sales are first are fast approaching pre-pandemic levels of two years ago. We expect to deliver our highest annual net income per diluted share, exceeding pre-pandemic results in fiscal 2020 by approximately 26%. We also expect to be in our strongest financial position. I'll now pass the call to Neil for discussion of our third quarter financial results, as well as the guidance for the full fiscal year 2022. Thank you, Morris.