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Here's How G-III Apparel (GIII) is Poised Ahead of Q2 Earnings

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G-III Apparel Group, Ltd. (GIII - Free Report) is likely to report both top and bottom-line growth when it releases second-quarter fiscal 2022 results on Sep 2. The Zacks Consensus Estimate for earnings in the fiscal second quarter currently stands at 10 cents. The year-ago quarter reported a loss of 31 cents a share. We note that the consensus estimate has been stable in the past seven days.

A glimpse of the company’s performance in the trailing four quarters shows that it has an earnings surprise of 122.8%, on average.

The consensus mark for quarterly revenues is pegged at $462.3 million, indicating an increase of about 56% from the year-ago quarter’s tally.

Key Factors to Note

G-III Apparel’s quarterly performance is most likely to have been driven by gains from digital business and brand strength. Management is focused on driving growth across the digital landscape via investments in internal talent, e-commerce sites and improved logistics capabilities. In fact, the company is witnessing robust results on the websites for DKNY and Karl Lagerfeld Paris.

The company is also steadily gaining from product lines resonating well with consumer demand. Sales for the broader lifestyle apparel including sportswear, wear-to-work attire and dresses have been impressive so far. Management is quite optimistic about the company’s five global power brands including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. Its overall business in North America is encouraging. The company continues to take measures to optimize costs. Cumulatively, these factors are likely to have contributed to the to-be-reported results.

On its last earnings call on Jun 7, management had projected net sales of about $460 million for second-quarter fiscal 2022. It had envisioned earnings per share of 3-13 cents.

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. 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 carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

 

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 this season:

lululemon athletica (LULU - Free Report) has an Earnings ESP of +3.06% and a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

H&R Block (HRB - Free Report) has an Earnings ESP of +8.99% and a Zacks Rank of 3 at present.

Aaron's has an Earnings ESP of +7.47% and is presently Zacks #3 Ranked.


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