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Why Is G-III Apparel (GIII) Up 12.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for G-III Apparel Group (GIII - Free Report) . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is G-III Apparel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
G-III Apparel posted mixed third-quarter fiscal 2023 results, wherein the top line beat the Zacks Consensus Estimate, while the bottom line missed the same. Also, revenues grew year over year, while earnings dipped.
The top-line results in the fiscal third quarter benefited from continued progress on its strategic priorities. However, the elevated inventory levels led to logistical challenges within the company’s distribution centers. Nonetheless, GIII’s order book remains sturdy for the fiscal fourth quarter and the company is well poised to serve the demand for the holiday season.
Management has notified that Calvin Klein and Tommy Hilfiger are an important part of its business. G-III Apparel has announced staggering extensions by category starting January 2024 and continuing through December 2027.
Q3 in Detail
G-III Apparel delivered adjusted earnings per share of $1.35, lagging the Zacks Consensus Estimate of $1.85. Also, the figure decreased sharply from $2.18 a share reported in the year-ago fiscal quarter.
Net sales jumped 6.2% from the last fiscal year’s quarterly figure to $1,078.3 million and came above the Zacks Consensus Estimate of $1,072 million.
Gross profit dipped 0.8% year over year to $344.6 million. However, the gross margin of 32% contracted 220 basis points (bps) from the prior-year period’s reading.
SG&A expenses grew 31.5% year over year to $239.9 million. G-III Apparel reported an operating income of $78.4 million, down from $146.7 million recorded in the year-ago fiscal quarter.
Financial Details
G-III Apparel ended the fiscal third quarter with cash and cash equivalents of $150.7 million and total debt of $879.5 million. Total stockholders’ equity was $1,622.3 million. Inventories increased significantly to $901 million at the end of the reported fiscal quarter from $449 million at the end of the year-ago fiscal quarter.
Management also repurchased roughly 800,000 shares for $17 million. GIII had cash and availability under the credit agreement of above $730 million at the end of the reported fiscal quarter.
Outlook
Management updated guidance for fiscal 2023, which takes into account the anticipated impact of the ongoing inflationary pressures on consumers and higher costs related to supply- chain conditions with the timing of goods receipts.
For fiscal 2023, management predicts an adjusted EBITDA between $265 million and $270 million, indicating a decline from an adjusted EBITDA of $350.2 million reported in fiscal 2022. For fiscal 2023, GIII envisions a net income of $142-$147 million, or $2.90-$3.00 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -31.69% due to these changes.
VGM Scores
Currently, G-III Apparel has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise G-III Apparel has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is G-III Apparel (GIII) Up 12.7% Since Last Earnings Report?
A month has gone by since the last earnings report for G-III Apparel Group (GIII - Free Report) . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is G-III Apparel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
G-III Apparel’s Q3 Earnings Miss, Sales Increase Y/Y
G-III Apparel posted mixed third-quarter fiscal 2023 results, wherein the top line beat the Zacks Consensus Estimate, while the bottom line missed the same. Also, revenues grew year over year, while earnings dipped.
The top-line results in the fiscal third quarter benefited from continued progress on its strategic priorities. However, the elevated inventory levels led to logistical challenges within the company’s distribution centers. Nonetheless, GIII’s order book remains sturdy for the fiscal fourth quarter and the company is well poised to serve the demand for the holiday season.
Management has notified that Calvin Klein and Tommy Hilfiger are an important part of its business. G-III Apparel has announced staggering extensions by category starting January 2024 and continuing through December 2027.
Q3 in Detail
G-III Apparel delivered adjusted earnings per share of $1.35, lagging the Zacks Consensus Estimate of $1.85. Also, the figure decreased sharply from $2.18 a share reported in the year-ago fiscal quarter.
Net sales jumped 6.2% from the last fiscal year’s quarterly figure to $1,078.3 million and came above the Zacks Consensus Estimate of $1,072 million.
Gross profit dipped 0.8% year over year to $344.6 million. However, the gross margin of 32% contracted 220 basis points (bps) from the prior-year period’s reading.
SG&A expenses grew 31.5% year over year to $239.9 million. G-III Apparel reported an operating income of $78.4 million, down from $146.7 million recorded in the year-ago fiscal quarter.
Financial Details
G-III Apparel ended the fiscal third quarter with cash and cash equivalents of $150.7 million and total debt of $879.5 million. Total stockholders’ equity was $1,622.3 million. Inventories increased significantly to $901 million at the end of the reported fiscal quarter from $449 million at the end of the year-ago fiscal quarter.
Management also repurchased roughly 800,000 shares for $17 million. GIII had cash and availability under the credit agreement of above $730 million at the end of the reported fiscal quarter.
Outlook
Management updated guidance for fiscal 2023, which takes into account the anticipated impact of the ongoing inflationary pressures on consumers and higher costs related to supply- chain conditions with the timing of goods receipts.
For fiscal 2023, management predicts an adjusted EBITDA between $265 million and $270 million, indicating a decline from an adjusted EBITDA of $350.2 million reported in fiscal 2022. For fiscal 2023, GIII envisions a net income of $142-$147 million, or $2.90-$3.00 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -31.69% due to these changes.
VGM Scores
Currently, G-III Apparel has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise G-III Apparel has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.