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G-III Apparel Group, Ltd. (GIII - Free Report) has posted first-quarter fiscal 2025 earnings, which beat the Zacks Consensus Estimate but declined year over year. Sales missed the consensus mark but improved year over year.
The company's strategic initiatives focus on leveraging design and merchandising strengths to drive profitable sales growth through innovative products and collections. Key strategies include expanding its European presence through a partnership with AWWG, enhancing omnichannel capabilities, transforming its North American retail business and making significant investments in marketing to increase global brand awareness and sales. The company is also focusing on reducing its reliance on PVH brands and expanding its presence in fast-growing markets like India and China.
Shares of this Zacks Rank #3 (Hold) company have surged 33.5%, outperforming the industry’s 0.3% decline in the past year.
G-III Apparel Group, LTD. Price, Consensus and EPS Surprise
Adjusted earnings of 12 cents per share outpaced the Zacks Consensus Estimate of an adjusted loss of 5 cents. However, the bottom line decreased from the year-earlier quarter’s adjusted earnings of 13 cents per share.
Net sales increased 0.5% year over year to $609.7 million and missed the consensus estimate of $615 million.
Net sales for the company's wholesale segment were $598 million, up from $587 million reported in the previous year. Meanwhile, the retail segment achieved net sales of $31 million, an increase from $30 million in the year-ago quarter, despite the closure of nine stores.
Gross profit slightly increased 3.6% year over year to $258.9 million. We note that the gross margin expanded 130 basis points (bps) year over year to 42.5%.
SG&A expenses moved up 3.8% year over year to $236.6 million. As a percentage of net sales, this metric increased 120 bps year over year to 38.8%. Operating profit was $13.5 million in the fiscal first quarter compared with the operating profit of $15.3 million in the year-earlier quarter.
Image Source: Zacks Investment Research
Other Financial Details
G-III Apparel ended the fiscal first quarter with cash and cash equivalents of $508.4 million and a total debt of $426.4 million. Total stockholders’ equity was $1.52 billion. Inventory declined 23.9% year over year to $479.7 million at the end of the quarter.
The company exited the fiscal first quarter with net cash of $80 million and more than $1 billion in liquidity.
Outlook
For the fiscal second quarter, the company expects net sales of approximately $650 million compared with $659.8 million in the year-ago quarter. It expects adjusted net income to be between $10 million and $15 million and adjusted earnings in the range of 22-32 cents per share. This compares with an adjusted net income of $18.6 million and adjusted earnings of 40 cents per share in fiscal 2024.
For the full fiscal year 2025, the company has reaffirmed its net sales guidance of approximately $3.2 billion, representing growth of approximately 3% from the previous year's net sales. This growth will be driven primarily by the its own brands and the launches of new initiatives, even as sales of Calvin Klein and Tommy Hilfiger are projected to continue to decline.
The company expects adjusted net income to be between $170 million and $175 million and adjusted earnings to be between $3.58 and $3.68 per share. This compares with an adjusted net income of $189.8 million and adjusted earnings of $4.04 per share in fiscal 2024. Adjusted EBITDA is expected to be between $295 million and $300 million compared with adjusted EBITDA of $324.1 million in the previous fiscal year.
The company continues to expect incremental expenses of approximately $60 million, primarily related to marketing expenses to support the launch of Donna Karan and further drive brand engagement for DKNY, as well as investments in technology and talent to expand operational capabilities. It continues to expect capital expenditures of approximately $50 million. This is higher than the spending in previous years, principally driven by the build-outs of shop-in-shops for brand launches and new technology to support the business.
Hanesbrands, which engages in the design, manufacture, sourcing and sale of apparel essentials, sports a Zacks Rank #1 (Strong Buy) at present. HBI has a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hanesbrands’ current financial-year earnings per share (EPS) indicates growth of 666.7% from the year-ago reported figure.
Crocs is one of the leading footwear brands, with its focus on comfort and style. CROX carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS implies growth of 4.4% and 5.2%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 17.1%, on average.
Guess designs, markets, distributes and licenses casual apparel and accessories. The company has a Zacks Rank of 2, at present. GES has a trailing four-quarter earnings surprise of 31%, on average.
The Zacks Consensus Estimate for Guess’ current fiscal-year sales indicates growth of 11.7%, from the year-ago reported figure.
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G-III Apparel (GIII) Q1 Earnings Beat Estimates, Sales Rise Y/Y
G-III Apparel Group, Ltd. (GIII - Free Report) has posted first-quarter fiscal 2025 earnings, which beat the Zacks Consensus Estimate but declined year over year. Sales missed the consensus mark but improved year over year.
The company's strategic initiatives focus on leveraging design and merchandising strengths to drive profitable sales growth through innovative products and collections. Key strategies include expanding its European presence through a partnership with AWWG, enhancing omnichannel capabilities, transforming its North American retail business and making significant investments in marketing to increase global brand awareness and sales. The company is also focusing on reducing its reliance on PVH brands and expanding its presence in fast-growing markets like India and China.
Shares of this Zacks Rank #3 (Hold) company have surged 33.5%, outperforming the industry’s 0.3% decline in the past year.
G-III Apparel Group, LTD. Price, Consensus and EPS Surprise
G-III Apparel Group, LTD. price-consensus-eps-surprise-chart | G-III Apparel Group, LTD. Quote
Q1 in Detail
Adjusted earnings of 12 cents per share outpaced the Zacks Consensus Estimate of an adjusted loss of 5 cents. However, the bottom line decreased from the year-earlier quarter’s adjusted earnings of 13 cents per share.
Net sales increased 0.5% year over year to $609.7 million and missed the consensus estimate of $615 million.
Net sales for the company's wholesale segment were $598 million, up from $587 million reported in the previous year. Meanwhile, the retail segment achieved net sales of $31 million, an increase from $30 million in the year-ago quarter, despite the closure of nine stores.
Gross profit slightly increased 3.6% year over year to $258.9 million. We note that the gross margin expanded 130 basis points (bps) year over year to 42.5%.
SG&A expenses moved up 3.8% year over year to $236.6 million. As a percentage of net sales, this metric increased 120 bps year over year to 38.8%. Operating profit was $13.5 million in the fiscal first quarter compared with the operating profit of $15.3 million in the year-earlier quarter.
Image Source: Zacks Investment Research
Other Financial Details
G-III Apparel ended the fiscal first quarter with cash and cash equivalents of $508.4 million and a total debt of $426.4 million. Total stockholders’ equity was $1.52 billion. Inventory declined 23.9% year over year to $479.7 million at the end of the quarter.
The company exited the fiscal first quarter with net cash of $80 million and more than $1 billion in liquidity.
Outlook
For the fiscal second quarter, the company expects net sales of approximately $650 million compared with $659.8 million in the year-ago quarter. It expects adjusted net income to be between $10 million and $15 million and adjusted earnings in the range of 22-32 cents per share. This compares with an adjusted net income of $18.6 million and adjusted earnings of 40 cents per share in fiscal 2024.
For the full fiscal year 2025, the company has reaffirmed its net sales guidance of approximately $3.2 billion, representing growth of approximately 3% from the previous year's net sales. This growth will be driven primarily by the its own brands and the launches of new initiatives, even as sales of Calvin Klein and Tommy Hilfiger are projected to continue to decline.
The company expects adjusted net income to be between $170 million and $175 million and adjusted earnings to be between $3.58 and $3.68 per share. This compares with an adjusted net income of $189.8 million and adjusted earnings of $4.04 per share in fiscal 2024. Adjusted EBITDA is expected to be between $295 million and $300 million compared with adjusted EBITDA of $324.1 million in the previous fiscal year.
The company continues to expect incremental expenses of approximately $60 million, primarily related to marketing expenses to support the launch of Donna Karan and further drive brand engagement for DKNY, as well as investments in technology and talent to expand operational capabilities. It continues to expect capital expenditures of approximately $50 million. This is higher than the spending in previous years, principally driven by the build-outs of shop-in-shops for brand launches and new technology to support the business.
Key Picks
Some better-ranked companies are Hanesbrands Inc. (HBI - Free Report) , Crocs, Inc. (CROX - Free Report) and Guess, Inc. (GES - Free Report) .
Hanesbrands, which engages in the design, manufacture, sourcing and sale of apparel essentials, sports a Zacks Rank #1 (Strong Buy) at present. HBI has a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hanesbrands’ current financial-year earnings per share (EPS) indicates growth of 666.7% from the year-ago reported figure.
Crocs is one of the leading footwear brands, with its focus on comfort and style. CROX carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS implies growth of 4.4% and 5.2%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 17.1%, on average.
Guess designs, markets, distributes and licenses casual apparel and accessories. The company has a Zacks Rank of 2, at present. GES has a trailing four-quarter earnings surprise of 31%, on average.
The Zacks Consensus Estimate for Guess’ current fiscal-year sales indicates growth of 11.7%, from the year-ago reported figure.