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G-III Apparel (GIII) Queues Up for Q1 Earnings: What to Expect

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G-III Apparel Group, Ltd. (GIII - Free Report) is likely to report top and bottom-line growth when it releases first-quarter fiscal 2022 results on Jun 7. The Zacks Consensus Estimate for the period’s earnings has increased a penny to 14 cents over the past 30 days. The year-ago quarter, however, incurred a loss of 75 cents per share. Also, the consensus mark for quarterly revenues is pegged at $461 million, indicating an increase of about 14% from the year-ago quarter’s tally.

On an encouraging note, the company delivered a trailing four-quarter earnings surprise of 49.7%, on average.

Key Factors to Note

G-III Apparel’s brand strength and digital business appear impressive. Management has been driving growth across the digital landscape via investments in internal talent, re-platformed e-commerce sites and improved logistics capabilities. In fact, it is seeing robust results on the websites for DKNY and Karl Lagerfeld Paris. In addition, it is gaining from product lines resonating with consumer demand toward casual, comfortable and functional clothing. Cumulatively, these positives are likely to have contributed to its fiscal first-quarter performance.

On its last earnings call, management had projected first-quarter net sales of roughly $460 million, suggesting an increase of 13.6% from $405.1 million in the year-ago quarter. It had anticipated gross margins to significantly improve from the year-ago quarter’s reported figure, mainly owing to the absence of wholesale gross margins that were hurt by the royalty reserves in the prior year. It had also informed that the company entered fiscal 2022 with a healthy inventory position.

On the flip side, the company has been grappling with a sluggish retail business for a while now. The company is witnessing challenging store traffic for a while now. Nonetheless, management completed restructuring of its retail division, which is remodeled to achieve profitability. So, let’s wait and see whether the revamped retail model could bring the segment back on track in the quarter under review through its imminent results.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for G-III Apparel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. price-eps-surprise | GIII Apparel Group, LTD. Quote

Although G-III Apparel currently carries a Zacks Rank #2, its Earnings ESP of -3.70% leaves surprise prediction inconclusive.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings:

The Aaron's Company presently has an Earnings ESP of +0.89% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Columbia Sportswear (COLM - Free Report) has an Earnings ESP of +43.18% and a Zacks Rank of 2, presently.

Carter's (CRI - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3 at present.

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