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G-III Stock Gains in a Month: Why is GIII Getting Investor Attention?
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Shares of G-III Apparel Group, Ltd. (GIII - Free Report) have experienced a decent price increase over the past month. The stock has rallied 24.1% compared with the Zacks Textile - Apparel industry’s 1.8% growth. The company’s strategy of expanding its digital and omnichannel capabilities, growing its global footprint, securing valuable licensing partnerships and improving operational efficiency has positioned it for long-term success.
GIII's ability to adapt and innovate in challenging market conditions has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 9% and 2.5%, respectively, during the same period. Closing at $30.53 on Sept. 10, G-III Apparel’s stock is currently trading 14.4% below its 52-week high of $35.68 attained on Dec. 15, 2023.
Image Source: Zacks Investment Research
Technical indicators are supportive of G-III Apparel’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in its financial health and prospects.
GIII's Digital, Global & Operational Advancements Bode Well
G-III has made significant strides in digital and omnichannel growth, focusing on enhancing its e-commerce platforms for flagship brands like DKNY and Karl Lagerfeld Paris. These platforms are equipped with the latest technology, including updated loyalty programs and advanced CRM capabilities, which are crucial for driving online sales and customer engagement.
The company has also been proactive in expanding its global footprint through strategic partnerships. A notable initiative is its increased stake in AWWG, a major European fashion player, which is expected to generate more than $200 million in sales from the Iberian market in the next three to five years.
This partnership will enhance the distribution and market reach of G-III's brands in Spain, Portugal and India. GIII's expansion into Latin America and the opening of stores in key cities like London and Hamburg are set to strengthen its international market presence.
Licensing agreements have been another focus for G-III. The company has secured high-value partnerships, including a significant deal with Converse, set to launch in Fall 2025. This agreement will bolster GIII's position in the active lifestyle segment and provide opportunities for international expansion. New licenses with brands like Champion and Nautica complement G-III's existing portfolio and broaden its reach in lifestyle and casualwear markets.
The company has achieved notable improvements in the gross margin and efficiency. It reported a 90-basis-point year over year increase in the gross margin to 42.8%, driven by higher sell-through rates and a focus on higher-margin owned brands. SG&A expenses also declined 4.3%, reflecting improved cost management and operational efficiency.
G-III is well-positioned for continued growth. The company has reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, indicating a 3% increase over the previous year. This positive outlook is supported by the strong performance of its brands, strategic marketing investments and effective cost management. Despite transitioning away from previous licenses with Calvin Klein and Tommy Hilfiger, G-III's go-forward brands are expected to drive 70% of net sales in fiscal 2025.
Does GIII Stock Still Seem Attractive?
From a valuation perspective, G-III Apparel’s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.50, which is below the five-year median of 7.71 and the industry’s average of 11.55, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the stock currently has a Value Score of A, thus further validating its appeal.
Image Source: Zacks Investment Research
How are Estimates of GIII Faring?
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 their estimates for the current fiscal year, resulting in an upward revision of 38 cents in the consensus estimate to $4.01 per share.
The consensus estimate for the next fiscal year has also advanced 38 cents to $4.11 per share. Impressively, the Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.20 billion and $3.30 billion, suggesting year-over-year growth of 3.3% and 3.2%, respectively.
Image Source: Zacks Investment Research
Conclusion
Investors are likely to view G-III's stock favorably due to its robust strategic positioning and growth potential. The company's successful advancements in digital and omnichannel capabilities, coupled with its expanding global footprint through key partnerships and high-value licensing agreements, highlight its commitment to long-term success.
GIII's focus on enhancing operational efficiency and achieving significant improvements in margins further underscores its financial strength. With an attractive valuation relative to historical and industry standards and positive revisions in earnings estimates, G-III presents a compelling investment opportunity poised for continued growth and success. The company currently sports a Zacks Rank #1 (Strong Buy).
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 8.9% and 10.7%, respectively, from the fiscal 2023 reported figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 61% and 12.6%, respectively, from the fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
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G-III Stock Gains in a Month: Why is GIII Getting Investor Attention?
Shares of G-III Apparel Group, Ltd. (GIII - Free Report) have experienced a decent price increase over the past month. The stock has rallied 24.1% compared with the Zacks Textile - Apparel industry’s 1.8% growth. The company’s strategy of expanding its digital and omnichannel capabilities, growing its global footprint, securing valuable licensing partnerships and improving operational efficiency has positioned it for long-term success.
GIII's ability to adapt and innovate in challenging market conditions has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 9% and 2.5%, respectively, during the same period. Closing at $30.53 on Sept. 10, G-III Apparel’s stock is currently trading 14.4% below its 52-week high of $35.68 attained on Dec. 15, 2023.
Image Source: Zacks Investment Research
Technical indicators are supportive of G-III Apparel’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in its financial health and prospects.
GIII's Digital, Global & Operational Advancements Bode Well
G-III has made significant strides in digital and omnichannel growth, focusing on enhancing its e-commerce platforms for flagship brands like DKNY and Karl Lagerfeld Paris. These platforms are equipped with the latest technology, including updated loyalty programs and advanced CRM capabilities, which are crucial for driving online sales and customer engagement.
The company has also been proactive in expanding its global footprint through strategic partnerships. A notable initiative is its increased stake in AWWG, a major European fashion player, which is expected to generate more than $200 million in sales from the Iberian market in the next three to five years.
This partnership will enhance the distribution and market reach of G-III's brands in Spain, Portugal and India. GIII's expansion into Latin America and the opening of stores in key cities like London and Hamburg are set to strengthen its international market presence.
Licensing agreements have been another focus for G-III. The company has secured high-value partnerships, including a significant deal with Converse, set to launch in Fall 2025. This agreement will bolster GIII's position in the active lifestyle segment and provide opportunities for international expansion. New licenses with brands like Champion and Nautica complement G-III's existing portfolio and broaden its reach in lifestyle and casualwear markets.
The company has achieved notable improvements in the gross margin and efficiency. It reported a 90-basis-point year over year increase in the gross margin to 42.8%, driven by higher sell-through rates and a focus on higher-margin owned brands. SG&A expenses also declined 4.3%, reflecting improved cost management and operational efficiency.
G-III is well-positioned for continued growth. The company has reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, indicating a 3% increase over the previous year. This positive outlook is supported by the strong performance of its brands, strategic marketing investments and effective cost management. Despite transitioning away from previous licenses with Calvin Klein and Tommy Hilfiger, G-III's go-forward brands are expected to drive 70% of net sales in fiscal 2025.
Does GIII Stock Still Seem Attractive?
From a valuation perspective, G-III Apparel’s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.50, which is below the five-year median of 7.71 and the industry’s average of 11.55, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the stock currently has a Value Score of A, thus further validating its appeal.
Image Source: Zacks Investment Research
How are Estimates of GIII Faring?
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 their estimates for the current fiscal year, resulting in an upward revision of 38 cents in the consensus estimate to $4.01 per share.
The consensus estimate for the next fiscal year has also advanced 38 cents to $4.11 per share. Impressively, the Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.20 billion and $3.30 billion, suggesting year-over-year growth of 3.3% and 3.2%, respectively.
Image Source: Zacks Investment Research
Conclusion
Investors are likely to view G-III's stock favorably due to its robust strategic positioning and growth potential. The company's successful advancements in digital and omnichannel capabilities, coupled with its expanding global footprint through key partnerships and high-value licensing agreements, highlight its commitment to long-term success.
GIII's focus on enhancing operational efficiency and achieving significant improvements in margins further underscores its financial strength. With an attractive valuation relative to historical and industry standards and positive revisions in earnings estimates, G-III presents a compelling investment opportunity poised for continued growth and success. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks are Boot Barn Holdings, Inc. (BOOT - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 8.9% and 10.7%, respectively, from the fiscal 2023 reported figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 61% and 12.6%, respectively, from the fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.