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Here's Why G-III Apparel (GIII) Marches Ahead of Its Industry
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G-III Apparel Group, Ltd. (GIII - Free Report) is well-positioned for continued growth and profitability. Its strategic focus on digital and omnichannel capabilities, market expansion, robust brand development, and effective financial management underpins a solid foundation for success. The company’s diverse strategies and strong execution are expected to drive significant sales growth and enhance its global market presence.
The stock has outpaced the Zacks Textile - Apparel industry. In the past year, shares of this Zacks Rank #1 (Strongly Buy) company have gained 35.8% against the industry’s decline of 7.7%.
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. Over the past 30 days, analysts have increased the estimate for the current fiscal year by 8 cents, and the consensus estimate is now pegged at $3.63 per share. The estimate for the next fiscal year has also been raised by 11 cents to $3.73 per share.
Image Source: Zacks Investment Research
Digging Deeper
G-III Apparel is enhancing its e-commerce platforms, particularly for its DKNY and Karl Lagerfeld Paris brands. This includes updating the sites with modern aesthetics, expanding CRM capabilities and improving technical operations. Partnerships with major online retailers like Amazon and Fanatics support this digital push.
Through a strategic partnership with AWWG, G-III Apparel is expanding its European presence and leveraging AWWG's infrastructure in Spain and Portugal. Additionally, AWWG's strong position in the Indian market provides growth opportunities for G-III’s brands.
The company is transforming its retail business in North America, making significant marketing investments to boost global brand awareness and sales. This includes reducing reliance on PVH brands and increasing market penetration in fast-growing regions like India and China. G-III Apparel plans to add more than 2,500 points of sale at retail partners across better department stores this fall, which is expected to drive significant sales growth.
In terms of performance, G-III Apparel has seen substantial growth. In the first quarter of fiscal 2025, the wholesale segment achieved net sales of $598 million, up from $587 million the previous year. Despite closing nine stores, the retail segment saw an increase in net sales, rising to $31 million from $30 million.
Brand Development & Marketing Bode Well
Brand development and marketing have also been robust for G-III Apparel. DKNY saw strong double-digit sales growth in the fiscal first quarter, driven by marketing campaigns and strategic partnerships like the one with the New York Yankees. International pop-up events bolstered European expansion.
Karl Lagerfeld experienced nearly 50% growth in North America, expanding distribution to 500 locations and introducing the sustainable Karl Lagerfeld Jeans line, with plans to leverage the upcoming Olympics for brand promotion.
The relaunch of Donna Karan was a standout success, marked by high average unit retails, better sell-through rates and significant retailer margins. Marketing campaigns featuring Cindy Crawford and Karlie Kloss have driven consumer engagement.
Driven by these factors, G-III Apparel reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, indicating 3% year-over-year growth. This positive outlook is underpinned by robust brand performance, strategic marketing investments and effective cost management.
The Zacks Consensus Estimate for HBI’s 2024 earnings indicates growth of 666.7% from the 2023 reported figures. HBI has a trailing four-quarter average earnings surprise of 10.2%.
Crocs is one of the leading footwear brands with its focus on comfort and style. The company has a Zacks Rank of 2 (Buy) at present. CROX delivered a 17.1% earnings surprise in the last reported quarter.
The consensus estimate for Crocs’ 2024 earnings and sales indicates growth of 5.2% and 4.4%, respectively, from the 2023 reported figures.
Guess designs, markets, distributes and licenses casual apparel and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Guess’ fiscal 2024 sales indicates growth of 11.7% from the year-ago period’s reported figures. GES has a trailing four-quarter average earnings surprise of 31%.
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Here's Why G-III Apparel (GIII) Marches Ahead of Its Industry
G-III Apparel Group, Ltd. (GIII - Free Report) is well-positioned for continued growth and profitability. Its strategic focus on digital and omnichannel capabilities, market expansion, robust brand development, and effective financial management underpins a solid foundation for success. The company’s diverse strategies and strong execution are expected to drive significant sales growth and enhance its global market presence.
The stock has outpaced the Zacks Textile - Apparel industry. In the past year, shares of this Zacks Rank #1 (Strongly Buy) company have gained 35.8% against the industry’s decline of 7.7%.
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. Over the past 30 days, analysts have increased the estimate for the current fiscal year by 8 cents, and the consensus estimate is now pegged at $3.63 per share. The estimate for the next fiscal year has also been raised by 11 cents to $3.73 per share.
Image Source: Zacks Investment Research
Digging Deeper
G-III Apparel is enhancing its e-commerce platforms, particularly for its DKNY and Karl Lagerfeld Paris brands. This includes updating the sites with modern aesthetics, expanding CRM capabilities and improving technical operations. Partnerships with major online retailers like Amazon and Fanatics support this digital push.
Through a strategic partnership with AWWG, G-III Apparel is expanding its European presence and leveraging AWWG's infrastructure in Spain and Portugal. Additionally, AWWG's strong position in the Indian market provides growth opportunities for G-III’s brands.
The company is transforming its retail business in North America, making significant marketing investments to boost global brand awareness and sales. This includes reducing reliance on PVH brands and increasing market penetration in fast-growing regions like India and China. G-III Apparel plans to add more than 2,500 points of sale at retail partners across better department stores this fall, which is expected to drive significant sales growth.
In terms of performance, G-III Apparel has seen substantial growth. In the first quarter of fiscal 2025, the wholesale segment achieved net sales of $598 million, up from $587 million the previous year. Despite closing nine stores, the retail segment saw an increase in net sales, rising to $31 million from $30 million.
Brand Development & Marketing Bode Well
Brand development and marketing have also been robust for G-III Apparel. DKNY saw strong double-digit sales growth in the fiscal first quarter, driven by marketing campaigns and strategic partnerships like the one with the New York Yankees. International pop-up events bolstered European expansion.
Karl Lagerfeld experienced nearly 50% growth in North America, expanding distribution to 500 locations and introducing the sustainable Karl Lagerfeld Jeans line, with plans to leverage the upcoming Olympics for brand promotion.
The relaunch of Donna Karan was a standout success, marked by high average unit retails, better sell-through rates and significant retailer margins. Marketing campaigns featuring Cindy Crawford and Karlie Kloss have driven consumer engagement.
Driven by these factors, G-III Apparel reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, indicating 3% year-over-year growth. This positive outlook is underpinned by robust brand performance, strategic marketing investments and effective cost management.
3 Other Promising Stocks
A few other top-ranked stocks are Hanesbrands Inc. (HBI - Free Report) , Crocs, Inc. (CROX - Free Report) and Guess, Inc. (GES - Free Report) .
Hanesbrands engages in the designing, manufacturing, sourcing and sale of apparel essentials. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HBI’s 2024 earnings indicates growth of 666.7% from the 2023 reported figures. HBI has a trailing four-quarter average earnings surprise of 10.2%.
Crocs is one of the leading footwear brands with its focus on comfort and style. The company has a Zacks Rank of 2 (Buy) at present. CROX delivered a 17.1% earnings surprise in the last reported quarter.
The consensus estimate for Crocs’ 2024 earnings and sales indicates growth of 5.2% and 4.4%, respectively, from the 2023 reported figures.
Guess designs, markets, distributes and licenses casual apparel and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Guess’ fiscal 2024 sales indicates growth of 11.7% from the year-ago period’s reported figures. GES has a trailing four-quarter average earnings surprise of 31%.