We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
G-III Apparel Group, Ltd. (GIII - Free Report) is just trying to survive the coronavirus crisis. This Zacks Rank #5 (Strong Sell) has already fallen 71% year-to-date.
G-III Apparel is a specialty retailer which makes apparel and accessories under their own, licensed and private label brands.
G-III's own brands include well-known brands DKNY, Donna Karan, Vilebrequin, G.H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard.
It has licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and Dockers brands.
It also has a team sports business with licenses with the National Football League, the NBA, Major League Baseball, the NHL and over 150 U.S. colleges and universities.
In addition to wholesale business, it operates retail stores for DKNY, Wilsons Leather, G.H. Bass, Vilebrequin, Karl Lagerfeld Paris and Calvin Klein Performance names.
Further Actions Taken in April 2020
On Mar 31, after G-III Apparel had reported fourth quarter results, it provided another update on actions it was taking in response to the COVID-19 outbreak.
As of Mar 30, management voluntarily agreed to temporary reductions in annual salaries. The CEO and Vice Chairman of the Board and President agreed to receive no salary.
Several others agreed to a 40% reduction in their annual salaries.
Also effective Mar 30, the base annual salaries of other senior personnel was temporarily reduced by 10% to 40%, depending on salary levels.
G-III Apparel also furloughed 60% of its wholesale operations segment employees, which was effective Apr 6. These employees would continue to receive existing healthcare benefits.
The company already had closed retail stores in locations with government-mandated shutdowns.
It will reduce its retail workforce by 80%, effective Apr 6, through furloughs and staff reductions. All of the full-time retail business furloughed employees will continue to receive existing healthcare benefits.
Cash on Hand?
On Mar 19, G-III Apparel reported its fourth quarter and full year fiscal 2020 results.
It did not issue any fiscal 2021 guidance at that time.
The company also confirmed that as of the end of fiscal 2020, it had about $800 million in cash and availability under its bank facilities.
Full Year Estimates Slashed
After the fourth quarter earnings report, the analysts all cut Fiscal 2021 earnings estimates.
6 estimates were lowered in the last 30 days for fiscal 2021, which pushed the 2021 Zacks Consensus Estimate to $0.99 from $3.07. That's an earnings decline of 69% as the company earnings $3.19 in fiscal 2020.
But that was then, and this is now.
Each retailer is simply trying to survive this crisis and make it to the other side.
Are Shares Cheap?
Shares have fallen 71% year-to-date, but have rallied off their March lows. They're still at 5-year lows.
They now trade with a forward P/E of 10.5 but it's still not clear what the "E" is going to be for the full year.
G-III Apparel's competitor, and partner, PVH (PVH - Free Report) is also a Zacks Rank #5 (Strong Sell) and is also facing similar business pressures.
Investors interested in the apparel and accessory retailers might want to wait until there is some certainty about earnings before diving in.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Bear of the Day: G-III Apparel Group (GIII)
G-III Apparel Group, Ltd. (GIII - Free Report) is just trying to survive the coronavirus crisis. This Zacks Rank #5 (Strong Sell) has already fallen 71% year-to-date.
G-III Apparel is a specialty retailer which makes apparel and accessories under their own, licensed and private label brands.
G-III's own brands include well-known brands DKNY, Donna Karan, Vilebrequin, G.H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard.
It has licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and Dockers brands.
It also has a team sports business with licenses with the National Football League, the NBA, Major League Baseball, the NHL and over 150 U.S. colleges and universities.
In addition to wholesale business, it operates retail stores for DKNY, Wilsons Leather, G.H. Bass, Vilebrequin, Karl Lagerfeld Paris and Calvin Klein Performance names.
Further Actions Taken in April 2020
On Mar 31, after G-III Apparel had reported fourth quarter results, it provided another update on actions it was taking in response to the COVID-19 outbreak.
As of Mar 30, management voluntarily agreed to temporary reductions in annual salaries. The CEO and Vice Chairman of the Board and President agreed to receive no salary.
Several others agreed to a 40% reduction in their annual salaries.
Also effective Mar 30, the base annual salaries of other senior personnel was temporarily reduced by 10% to 40%, depending on salary levels.
G-III Apparel also furloughed 60% of its wholesale operations segment employees, which was effective Apr 6. These employees would continue to receive existing healthcare benefits.
The company already had closed retail stores in locations with government-mandated shutdowns.
It will reduce its retail workforce by 80%, effective Apr 6, through furloughs and staff reductions. All of the full-time retail business furloughed employees will continue to receive existing healthcare benefits.
Cash on Hand?
On Mar 19, G-III Apparel reported its fourth quarter and full year fiscal 2020 results.
It did not issue any fiscal 2021 guidance at that time.
The company also confirmed that as of the end of fiscal 2020, it had about $800 million in cash and availability under its bank facilities.
Full Year Estimates Slashed
After the fourth quarter earnings report, the analysts all cut Fiscal 2021 earnings estimates.
6 estimates were lowered in the last 30 days for fiscal 2021, which pushed the 2021 Zacks Consensus Estimate to $0.99 from $3.07. That's an earnings decline of 69% as the company earnings $3.19 in fiscal 2020.
But that was then, and this is now.
Each retailer is simply trying to survive this crisis and make it to the other side.
Are Shares Cheap?
Shares have fallen 71% year-to-date, but have rallied off their March lows. They're still at 5-year lows.
They now trade with a forward P/E of 10.5 but it's still not clear what the "E" is going to be for the full year.
G-III Apparel's competitor, and partner, PVH (PVH - Free Report) is also a Zacks Rank #5 (Strong Sell) and is also facing similar business pressures.
Investors interested in the apparel and accessory retailers might want to wait until there is some certainty about earnings before diving in.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>