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Here's Why G-III Apparel (GIII) is Rallying Ahead of Industry
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Shares of G-III Apparel Group, Ltd. (GIII - Free Report) have surged a whopping 57.7% year to date, thanks to its robust business strategies with digital expansion and brand strength. The company has been undertaking several strategies, including acquisitions and licensing of well-known brands, to expand its product portfolio.
Management remains optimistic about the company’s diversified portfolio backed by the global power brands, namely DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. Meanwhile, the industry increased 0.4% so far this year.
A VGM Score of A further speaks volumes for this current Zacks Rank #2 (Buy) company. Analysts seem optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $3.35 billion and $3.06, respectively. These estimates show corresponding increases of 2% and 6.7% year over year.
Let’s Delve Deeper
G-III Apparel’s strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business. G-III Apparel has also been making progress on rightsizing the inventory. With the normalization of port congestion and lead times, management has adjusted the warehouse space appropriately. This trend is likely to continue throughout the year.
Image Source: Zacks Investment Research
Management has announced a new licensing agreement for the Halston brand. The company has entered into a 25-year agreement with Xcel Brands to design and manufacture all categories, with the choice to buy the brand at the end of the licensing term. Halston is an American heritage brand with a legacy of glamorous designs across a range of price points. The first deliveries are likely to be in 2024 fall.
We note that G-III Apparel has numerous growth opportunities including the Spring 2024 repositioning and expansion of the Donna Karan label, and a new long-term license for the Nautica brand. Nautica is available in nearly 1300 freestanding stores and shops globally and boasts a sturdy digital presence in over 30 countries.
The company is on track to produce Nautica products across several categories starting with jeanswear. This includes jeans and a complete range of corresponding lifestyle products. The company will later expand in a phased manner with other categories like sportswear, suit separates and dresses.
Management is on track with the development of the Nautica and Donna Karan brands. For Nautica, the company is working on bringing the Spring 2024 jeans line to life, while for Donna Karan, it is leveraging the brand’s classic, contemporary, and elevated feel and widening its appeal to a broader consumer base. Furthermore, the company has been maximizing its omnichannel opportunities and leveraging data for a while.
Given all the aforesaid tailwinds, we believe G-III Apparel will continue to perform well on the bourses.
RCL has a trailing four-quarter earnings surprise of 28.5%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 53.6% and 177.7%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2, at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 17.1% and 18.4%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 3% and 12.8%, respectively, from the year-ago corresponding figures.
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Here's Why G-III Apparel (GIII) is Rallying Ahead of Industry
Shares of G-III Apparel Group, Ltd. (GIII - Free Report) have surged a whopping 57.7% year to date, thanks to its robust business strategies with digital expansion and brand strength. The company has been undertaking several strategies, including acquisitions and licensing of well-known brands, to expand its product portfolio.
Management remains optimistic about the company’s diversified portfolio backed by the global power brands, namely DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. Meanwhile, the industry increased 0.4% so far this year.
A VGM Score of A further speaks volumes for this current Zacks Rank #2 (Buy) company. Analysts seem optimistic about the company. The Zacks Consensus Estimate for fiscal 2025 sales and earnings per share (EPS) is currently pegged at $3.35 billion and $3.06, respectively. These estimates show corresponding increases of 2% and 6.7% year over year.
Let’s Delve Deeper
G-III Apparel’s strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business. G-III Apparel has also been making progress on rightsizing the inventory. With the normalization of port congestion and lead times, management has adjusted the warehouse space appropriately. This trend is likely to continue throughout the year.
Image Source: Zacks Investment Research
Management has announced a new licensing agreement for the Halston brand. The company has entered into a 25-year agreement with Xcel Brands to design and manufacture all categories, with the choice to buy the brand at the end of the licensing term. Halston is an American heritage brand with a legacy of glamorous designs across a range of price points. The first deliveries are likely to be in 2024 fall.
We note that G-III Apparel has numerous growth opportunities including the Spring 2024 repositioning and expansion of the Donna Karan label, and a new long-term license for the Nautica brand. Nautica is available in nearly 1300 freestanding stores and shops globally and boasts a sturdy digital presence in over 30 countries.
The company is on track to produce Nautica products across several categories starting with jeanswear. This includes jeans and a complete range of corresponding lifestyle products. The company will later expand in a phased manner with other categories like sportswear, suit separates and dresses.
Management is on track with the development of the Nautica and Donna Karan brands. For Nautica, the company is working on bringing the Spring 2024 jeans line to life, while for Donna Karan, it is leveraging the brand’s classic, contemporary, and elevated feel and widening its appeal to a broader consumer base. Furthermore, the company has been maximizing its omnichannel opportunities and leveraging data for a while.
Given all the aforesaid tailwinds, we believe G-III Apparel will continue to perform well on the bourses.
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Some other top-ranked companies are Royal Caribbean (RCL - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Royal Caribbean sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 28.5%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 53.6% and 177.7%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2, at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 17.1% and 18.4%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 3% and 12.8%, respectively, from the year-ago corresponding figures.