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G-III Apparel (GIII) Gains on Digital Growth, Market Expansion
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G-III Apparel Group, Ltd.’s (GIII - Free Report) focus on digital growth, market expansion and robust brand management positions it for sustained success. The company’s enhanced omnichannel capabilities, key partnerships and investments in high-growth markets are expected to drive significant sales growth. Strong performances in both wholesale and retail segments, coupled with successful brand initiatives like DKNY and Karl Lagerfeld, underscore its competitive edge.
The continued reduction in reliance on PVH brands and expansion into new product categories further solidified its market presence. Driven by these factors, in the past year, shares of G-III Apparel have gained 17.7% against the Zacks Textile - Apparel industry’s steeper decline of 15.3%. The company currently has a Value Score of A, further validating its appeal.
Image Source: Zacks Investment Research
Delving Deeper
G-III Apparel is upgrading its e-commerce platforms, particularly for its DKNY and Karl Lagerfeld Paris brands. This effort involves modernizing website aesthetics, expanding CRM capabilities and enhancing technical operations. Collaborations with major online retailers like Amazon and Fanatics support this digital initiative.
Through a strategic partnership with AWWG, GIII is expanding its presence in Europe by leveraging AWWG's infrastructure in Spain and Portugal. Additionally, AWWG's strong market position in India provides growth opportunities for G-III’s brands.
G-III is transforming its retail business in North America with significant marketing investments to boost global brand awareness and sales. This transformation includes reducing reliance on PVH brands and increasing market penetration in rapidly growing regions, such as India and China. This fall, G-III Apparel plans to add more than 2,500 points of sale at retail partners across better department stores, driving significant sales growth.
Brand development and marketing efforts have been robust for GIII. DKNY experienced strong double-digit sales growth in the first quarter of fiscal 2025, driven by marketing campaigns and strategic partnerships, including that with the New York Yankees. International pop-up events have bolstered Europe expansion.
Karl Lagerfeld saw 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, characterized 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.
Path Ahead
G-III Apparel's commitment to brand building, effective marketing, cost management and market expansion provides a solid foundation for continued growth and profitability in fiscal 2025 and beyond. The company reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, suggesting 3% year-over-year growth.
Despite the positive factors, the Zacks Rank #3 (Hold) company has been witnessing a tough operating landscape, including the inflationary pressures on consumers’ discretionary spending. This might weigh on the company’s performance in the near term. For the second quarter of fiscal 2025, it expects adjusted net income of $10-$15 million and adjusted earnings of 22-32 cents per share. Notably, the company reported an adjusted net income of $18.6 million and adjusted earnings of 40 cents per share in second-quarter fiscal 2024.
However, GIII's strategic initiatives, including its e-commerce advancements, international expansion and increased focus on owned brands, are expected to effectively navigate the current operating environment.
The Zacks Consensus Estimate for KTB’s 2024 earnings and sales indicates growth of 12.7% and 0.1%, respectively, from the 2023 reported figures. KTB has a trailing four-quarter average earnings surprise of 12.3%.
Skechers designs, develops, markets and distributes footwear. The company has a Zacks Rank of 2 at present.
The consensus estimate for Skechers’ 2024 earnings and sales indicates growth of 19.2% and 11.8%, respectively, from the 2023 reported figures. SKX has a trailing four-quarter average earnings surprise of 11.2%.
Under Armour is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Under Armour’s fiscal 2025 sales indicates a decline of 10.8% from the year-ago period’s reported figure. GES has a trailing four-quarter average earnings surprise of 64.2%.
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G-III Apparel (GIII) Gains on Digital Growth, Market Expansion
G-III Apparel Group, Ltd.’s (GIII - Free Report) focus on digital growth, market expansion and robust brand management positions it for sustained success. The company’s enhanced omnichannel capabilities, key partnerships and investments in high-growth markets are expected to drive significant sales growth. Strong performances in both wholesale and retail segments, coupled with successful brand initiatives like DKNY and Karl Lagerfeld, underscore its competitive edge.
The continued reduction in reliance on PVH brands and expansion into new product categories further solidified its market presence. Driven by these factors, in the past year, shares of G-III Apparel have gained 17.7% against the Zacks Textile - Apparel industry’s steeper decline of 15.3%. The company currently has a Value Score of A, further validating its appeal.
Image Source: Zacks Investment Research
Delving Deeper
G-III Apparel is upgrading its e-commerce platforms, particularly for its DKNY and Karl Lagerfeld Paris brands. This effort involves modernizing website aesthetics, expanding CRM capabilities and enhancing technical operations. Collaborations with major online retailers like Amazon and Fanatics support this digital initiative.
Through a strategic partnership with AWWG, GIII is expanding its presence in Europe by leveraging AWWG's infrastructure in Spain and Portugal. Additionally, AWWG's strong market position in India provides growth opportunities for G-III’s brands.
G-III is transforming its retail business in North America with significant marketing investments to boost global brand awareness and sales. This transformation includes reducing reliance on PVH brands and increasing market penetration in rapidly growing regions, such as India and China. This fall, G-III Apparel plans to add more than 2,500 points of sale at retail partners across better department stores, driving significant sales growth.
Brand development and marketing efforts have been robust for GIII. DKNY experienced strong double-digit sales growth in the first quarter of fiscal 2025, driven by marketing campaigns and strategic partnerships, including that with the New York Yankees. International pop-up events have bolstered Europe expansion.
Karl Lagerfeld saw 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, characterized 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.
Path Ahead
G-III Apparel's commitment to brand building, effective marketing, cost management and market expansion provides a solid foundation for continued growth and profitability in fiscal 2025 and beyond. The company reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, suggesting 3% year-over-year growth.
Despite the positive factors, the Zacks Rank #3 (Hold) company has been witnessing a tough operating landscape, including the inflationary pressures on consumers’ discretionary spending. This might weigh on the company’s performance in the near term. For the second quarter of fiscal 2025, it expects adjusted net income of $10-$15 million and adjusted earnings of 22-32 cents per share. Notably, the company reported an adjusted net income of $18.6 million and adjusted earnings of 40 cents per share in second-quarter fiscal 2024.
However, GIII's strategic initiatives, including its e-commerce advancements, international expansion and increased focus on owned brands, are expected to effectively navigate the current operating environment.
3 Promising Stocks
A few better-ranked stocks are Kontoor Brands Inc. (KTB - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) and Under Armour, Inc. (UAA - Free Report) .
Kontoor Brands is an apparel company. It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s 2024 earnings and sales indicates growth of 12.7% and 0.1%, respectively, from the 2023 reported figures. KTB has a trailing four-quarter average earnings surprise of 12.3%.
Skechers designs, develops, markets and distributes footwear. The company has a Zacks Rank of 2 at present.
The consensus estimate for Skechers’ 2024 earnings and sales indicates growth of 19.2% and 11.8%, respectively, from the 2023 reported figures. SKX has a trailing four-quarter average earnings surprise of 11.2%.
Under Armour is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Under Armour’s fiscal 2025 sales indicates a decline of 10.8% from the year-ago period’s reported figure. GES has a trailing four-quarter average earnings surprise of 64.2%.