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GIII Stock Dips 13% From Its 52-Week High: Is Now the Time to Invest?
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Shares of G-III Apparel Group, Ltd. (GIII - Free Report) are currently trading 13.1% below the 52-week high of $36.18 reached on Dec. 13, 2024, making investors contemplate their next moves. In the past six months, the GIII stock has gained 19% compared with the Zacks Textile - Apparel industry’s 20% growth.
The company’s focus on global expansion and strategic brand building has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 9.5% and 5%, respectively, during the same time frame.
GIII Stock Past Six-Month Performance
Image Source: Zacks Investment Research
This distinguished global fashion entity closed Wednesday’s trading session at $31.44. The stock is trading above its 100- and 200-day simple moving averages (SMAs) of $30.90 and $29.08, respectively, highlighting a continued uptrend.
GIII Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
G-III’s Impressive Brand Portfolio
GIII's strategic focus on expanding its owned brands has paid off, with DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin showing notable growth in the third quarter of fiscal 2025. This highlights their increasing significance within G-III's portfolio, with these brands playing a key role in driving higher sales, gross margin and licensing income.
DKNY achieved over 30% year-over-year sales growth during the third quarter, driven by strong wholesale demand in North America and expanded distribution, including 700 new points of sale for the fall season. Similarly, Karl Lagerfeld achieved over 30% growth in North America, with growing momentum internationally. A standout development was the men's category for Karl Lagerfeld, projected to represent more than 20% of the brand’s international sales in fiscal 2025, up from 17% the previous year.
Moreover, Donna Karan’s relaunch surpassed expectations, delivering double-digit growth in retail sales while achieving some of the highest Average Unit Retail and sell-through rates across G-III’s portfolio. The brand's retail footprint grew from 900 locations in spring 2024 to 1,200 in fall 2024, with plans to expand to 1,600 by spring 2025. Long-term annual sales potential for Donna Karan is estimated to exceed $1 billion.
GIII Advances Global Expansion
Global expansion remains a top priority for G-III Apparel, particularly in Europe, where the company continues to leverage its collaboration with AWWG. This strategic partnership, still in its early stages, aims to maximize synergies and enhance global operations. Owned brands such as DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin are making significant headway in international markets, supported by strong marketing and distribution initiatives.
Donna Karan's relaunch has achieved greater success than anticipated, highlighting the brand’s potential for expanded geographic reach. Meanwhile, DKNY has been steadily growing in international markets through enhanced retail partnerships and strategic marketing efforts, including the global debut of the DKNY 24/7 Fragrance campaign.
Retail Transformation of G-III
G-III Apparel’s retail division is undergoing a notable transformation under new leadership. For the third quarter, net sales reached $42.3 million, compared to $32.7 million in the same period of the previous fiscal year. This growth was achieved despite the closure of seven stores, driven by robust double-digit growth in comparable sales.
The retail segment is on track to break even in fiscal 2025 and is projected to achieve profitability in fiscal 2026 for the first time in over a decade. Enhanced retail execution enables G-III Apparel to showcase the full lifestyle offerings of its brands while gathering valuable customer insights to bolster its omnichannel capabilities.
Sneak Peek Into GIII’s Outlook
On its last earnings call, the company projected net sales for fiscal 2025 to be $3.15 billion, suggesting 2% year-over-year growth, driven by the success of its owned brands and strategic initiatives. GIII guided sales from the go-forward portfolio to account for 70% of the total net sales in fiscal 2025.
The company forecasted adjusted net income between $186 million and $191 million compared with $189.8 million reported in fiscal 2024. Also, GIII anticipated adjusted earnings per share between $4.10 and $4.20 compared with the $4.04 reported in the prior year period.
GIII's Estimates Show Upward Revisions
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 60 days, analysts have increased their estimates for the current fiscal year, resulting in an upward revision of 15 cents to $4.16. The consensus estimate for earnings for the next fiscal year has also advanced 10 cents to $4.21 per share. This indicates year-over-year growth of 3% and 1.2%, respectively.
The Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.15 billion and $3.25 billion, respectively, indicating year-over-year growth of 1.7% and 3.2%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Words on GIII Stock
Investors may find G-III an appealing choice driven by its strong brand portfolio, strategic global expansion efforts and impressive financial health. The company’s ability to deliver consistent growth through its owned brands, backed by robust international performance and retail transformation, showcases its potential for long-term profitability. Additionally, positive market sentiment reflected in upward earnings revisions and technical strength, underpins investor confidence in G-III’s resilience and future growth prospects, making it a stock worth considering. The company currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 11.8% and 10.4%, respectively, from the fiscal 2024 reported figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
Ralph Lauren offers products in apparel, footwear, accessories, home furnishings and other licensed product categories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for RL’s fiscal 2025 earnings and sales indicates growth of 14% and 3.6%, respectively, from the fiscal 2024 reported levels. RL delivered a trailing four-quarter average earnings surprise of 9.1%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.
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GIII Stock Dips 13% From Its 52-Week High: Is Now the Time to Invest?
Shares of G-III Apparel Group, Ltd. (GIII - Free Report) are currently trading 13.1% below the 52-week high of $36.18 reached on Dec. 13, 2024, making investors contemplate their next moves. In the past six months, the GIII stock has gained 19% compared with the Zacks Textile - Apparel industry’s 20% growth.
The company’s focus on global expansion and strategic brand building has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 9.5% and 5%, respectively, during the same time frame.
GIII Stock Past Six-Month Performance
Image Source: Zacks Investment Research
This distinguished global fashion entity closed Wednesday’s trading session at $31.44. The stock is trading above its 100- and 200-day simple moving averages (SMAs) of $30.90 and $29.08, respectively, highlighting a continued uptrend.
GIII Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
G-III’s Impressive Brand Portfolio
GIII's strategic focus on expanding its owned brands has paid off, with DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin showing notable growth in the third quarter of fiscal 2025. This highlights their increasing significance within G-III's portfolio, with these brands playing a key role in driving higher sales, gross margin and licensing income.
DKNY achieved over 30% year-over-year sales growth during the third quarter, driven by strong wholesale demand in North America and expanded distribution, including 700 new points of sale for the fall season. Similarly, Karl Lagerfeld achieved over 30% growth in North America, with growing momentum internationally. A standout development was the men's category for Karl Lagerfeld, projected to represent more than 20% of the brand’s international sales in fiscal 2025, up from 17% the previous year.
Moreover, Donna Karan’s relaunch surpassed expectations, delivering double-digit growth in retail sales while achieving some of the highest Average Unit Retail and sell-through rates across G-III’s portfolio. The brand's retail footprint grew from 900 locations in spring 2024 to 1,200 in fall 2024, with plans to expand to 1,600 by spring 2025. Long-term annual sales potential for Donna Karan is estimated to exceed $1 billion.
GIII Advances Global Expansion
Global expansion remains a top priority for G-III Apparel, particularly in Europe, where the company continues to leverage its collaboration with AWWG. This strategic partnership, still in its early stages, aims to maximize synergies and enhance global operations. Owned brands such as DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin are making significant headway in international markets, supported by strong marketing and distribution initiatives.
Donna Karan's relaunch has achieved greater success than anticipated, highlighting the brand’s potential for expanded geographic reach. Meanwhile, DKNY has been steadily growing in international markets through enhanced retail partnerships and strategic marketing efforts, including the global debut of the DKNY 24/7 Fragrance campaign.
Retail Transformation of G-III
G-III Apparel’s retail division is undergoing a notable transformation under new leadership. For the third quarter, net sales reached $42.3 million, compared to $32.7 million in the same period of the previous fiscal year. This growth was achieved despite the closure of seven stores, driven by robust double-digit growth in comparable sales.
The retail segment is on track to break even in fiscal 2025 and is projected to achieve profitability in fiscal 2026 for the first time in over a decade. Enhanced retail execution enables G-III Apparel to showcase the full lifestyle offerings of its brands while gathering valuable customer insights to bolster its omnichannel capabilities.
Sneak Peek Into GIII’s Outlook
On its last earnings call, the company projected net sales for fiscal 2025 to be $3.15 billion, suggesting 2% year-over-year growth, driven by the success of its owned brands and strategic initiatives. GIII guided sales from the go-forward portfolio to account for 70% of the total net sales in fiscal 2025.
The company forecasted adjusted net income between $186 million and $191 million compared with $189.8 million reported in fiscal 2024. Also, GIII anticipated adjusted earnings per share between $4.10 and $4.20 compared with the $4.04 reported in the prior year period.
GIII's Estimates Show Upward Revisions
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 60 days, analysts have increased their estimates for the current fiscal year, resulting in an upward revision of 15 cents to $4.16. The consensus estimate for earnings for the next fiscal year has also advanced 10 cents to $4.21 per share. This indicates year-over-year growth of 3% and 1.2%, respectively.
The Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.15 billion and $3.25 billion, respectively, indicating year-over-year growth of 1.7% and 3.2%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Words on GIII Stock
Investors may find G-III an appealing choice driven by its strong brand portfolio, strategic global expansion efforts and impressive financial health. The company’s ability to deliver consistent growth through its owned brands, backed by robust international performance and retail transformation, showcases its potential for long-term profitability. Additionally, positive market sentiment reflected in upward earnings revisions and technical strength, underpins investor confidence in G-III’s resilience and future growth prospects, making it a stock worth considering. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Some other top-ranked stocks are lululemon athletica inc. (LULU - Free Report) , Ralph Lauren Corp. (RL - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. It presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 11.8% and 10.4%, respectively, from the fiscal 2024 reported figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
Ralph Lauren offers products in apparel, footwear, accessories, home furnishings and other licensed product categories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for RL’s fiscal 2025 earnings and sales indicates growth of 14% and 3.6%, respectively, from the fiscal 2024 reported levels. RL delivered a trailing four-quarter average earnings surprise of 9.1%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.