Back to top

Value

Zacks Equity Research

G-III Apparel Group

GIII

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

G-III Apparel Group, Ltd. (GIII - Snapshot Report) raised its earnings outlook for the fiscal year during its quarterly report, which led to all earnings estimates being revised higher. Furthermore, this Zacks #2 Rank (Buy) apparel manufacturer and distributor has become a compelling valuation, as evidenced from its low price-to-sales (P/S) ratio of 0.53 and its price-to-book (P/B) multiple of just 1.67.

GIII has been enjoying solid demand for its brands and assortments, new business opportunities and increased penetration. Management expects to reinvigorate growth through acquisitions, such as the recent acquisition of Vilebrequin, a leading luxury resort brand.

Profit Surges, Beats Estimate

On December 5, G-III Apparel announced fiscal third-quarter earnings of $2.43 per share, surpassing the Zacks Consensus Estimate by 5.2% and increasing 12.5% from last year.

Management now projects fiscal 2013 earnings between $2.82 and $2.92 per share, up from the previous forecast of $2.74 to $2.84.

Net sales rose 6.6% year over year to $543.5 million, but fell short of the Zacks Consensus Estimate at $573 million. G-III Apparel’s gross profit jumped 17.2% to $190.2 million, whereas gross margin expanded 320 basis points to 35%.

Earnings Estimates on the Rise

The Zacks Consensus Estimate for fiscal 2013 rose 2.8% to $2.92 per share over the last 30 days, as all 6 estimates were revised upward. This guidance implies a year-over-year increase of 18.8%.

The Zacks Consensus Estimate for fiscal 2014 advanced 2.8% over the same timeframe to $3.32 per share, thanks again to upward revisions from all 6 estimates. The current estimate suggests year-over-year growth of 13.6%.

Impressive Valuation

In addition to low P/S and P/B multiples, the stock looks attractive with respect to a forward price-to-earnings (P/E) multiple of 11.97 (under the peer group average of 15.48). A P/E below 15.0, a P/S ratio less than 1.0 and a P/B ratio under 3.0 generally suggest a value stock. Volume is fairly strong, averaging roughly 177K daily. The return on investment (ROI) also looks attractive. It has a trailing 12-month ROI of 14.8%, which is better than the industry average of 13.9%.

The stock price remains below fiscal 2013 and 2014 earnings estimates, reflecting that the stock is still undervalued. Currently, the stock price is in the range of $30.00–$35.00, and has generated a solid year-to-date return of 41%, significantly higher than the S&P 500’s return of 13.3%.

G-III Apparel Group is a leading designer, manufacturer and distributor of women’s and men’s apparel in the United States. G-III Apparel offers its products to department, specialty, and mass merchant retail stores, as well as upper tier stores and catalogs primarily in the United States, Canada, Europe, and the Far East. The company, which primarily competes with Nike Inc. (NKE), has a market cap of $703.2 million.


Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>


Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%