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G-III Apparel (GIII) Buoyant on Digital & Brand Strength
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G-III Apparel Group, Ltd. (GIII - Free Report) is among the recognized players in the Zacks Textile – Apparel industry, which is in the top 14% of all the Zacks Classified industries. GIII is performing well on the back of robust digital gains and strength in its global power brands. Management is focused on updating websites to offer a seamless customer experience. GIII is well-positioned with its diversified product categories across its five powerful brands, such as DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris to cater to growing demand.
Shares of this New York-based player have increased 12.1% in the past six months, outperforming the industry’s 3.2% growth. The Zacks Consensus Estimate for this presently Zacks Rank #2 (Buy) player’s current-year sales and earnings is pegged at $2.97 billion and $3.76, respectively, suggesting growth of nearly 8% and 1% each from the corresponding year-earlier actuals.
Let’s Delve Deeper
G-III Apparel’s digital business has been contributing to its results for a while. Management is progressing well with its improved digital platforms of DKNY and Karl Lagerfeld Paris. These sites are likely to offer an immersive brand content to engage consumers, thereby facilitating conversion and leveraging sales tools, such as virtual selling. It is steadily investing in data analytics capabilities to better know the consumers across channels and boost their shopping experiences. Also, the company’s partnership with GEODIS, its logistics provider, to boost the direct-to-consumer capabilities appears encouraging. Going ahead, G-III Apparel’s digital business will continue to exhibit momentum.
Discussing about brand strength, G-III Apparel’s DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris have been experiencing strength for sometime now. Management had earlier anticipated the annual net wholesale sales potential for these five power brands to be $4 billion. GIII is also seeing strength in the outerwear business. The top categories, including comfort casual product, athleisure and casual sportswear are performing well. Jeans across its power brands beat expectations and is a major contributor to its results.
With respect to athleisure and casual sportswear, management is steadily expanding collections to cash in on the consumers' growing demand. Comfort, performance and functionality are driving the athleisure business. DKNY and Karl Lagerfeld Paris footwear business performed outstandingly with net sales being nearly 50% higher than the pre-pandemic levels during the fiscal third quarter.
Earlier, GIII had announced plans to acquire an iconic European luxury fashion brand called Sonia Rykiel, which is likely to strengthen its global footprint in the luxury space.
Conclusion
GIII-Apparel’s efforts to bolster brands across channels with launches, improved marketing strategies and a broader consumer reach will keep yielding results. GIII’s brand strength coupled with sturdy digital efforts and other strategies are likely to retain its momentum on the bourses ahead. A Value Score of B and an expected long-term earnings growth rate of 15% further speak volumes.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and earnings per share (EPS) suggests respective growth of 12.3% and 19.1%, from the corresponding year-ago reported figures. DLA has a trailing four-quarter earnings surprise of 21.3%, on average.
Ralph Lauren (RL - Free Report) , the designer and marketer of premium lifestyle products, flaunts a Zacks Rank of 1 at present. RL has an expected EPS growth rate of 15% for three-five years.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 40% and 381.2%, respectively, from the year-ago corresponding figures. RL has a trailing four-quarter earnings surprise of 94.1%, on average.
Gildan Activewear (GIL - Free Report) , the manufacturer and marketer of premium quality branded basic activewear, has a Zacks Rank of 2, currently. GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear current-year sales and EPS suggests respective growth of 8.2% and 9.4% from the year-ago corresponding readings. GIL has an expected EPS growth rate of 9% for three-five years.
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G-III Apparel (GIII) Buoyant on Digital & Brand Strength
G-III Apparel Group, Ltd. (GIII - Free Report) is among the recognized players in the Zacks Textile – Apparel industry, which is in the top 14% of all the Zacks Classified industries. GIII is performing well on the back of robust digital gains and strength in its global power brands. Management is focused on updating websites to offer a seamless customer experience. GIII is well-positioned with its diversified product categories across its five powerful brands, such as DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris to cater to growing demand.
Shares of this New York-based player have increased 12.1% in the past six months, outperforming the industry’s 3.2% growth. The Zacks Consensus Estimate for this presently Zacks Rank #2 (Buy) player’s current-year sales and earnings is pegged at $2.97 billion and $3.76, respectively, suggesting growth of nearly 8% and 1% each from the corresponding year-earlier actuals.
Let’s Delve Deeper
G-III Apparel’s digital business has been contributing to its results for a while. Management is progressing well with its improved digital platforms of DKNY and Karl Lagerfeld Paris. These sites are likely to offer an immersive brand content to engage consumers, thereby facilitating conversion and leveraging sales tools, such as virtual selling. It is steadily investing in data analytics capabilities to better know the consumers across channels and boost their shopping experiences. Also, the company’s partnership with GEODIS, its logistics provider, to boost the direct-to-consumer capabilities appears encouraging. Going ahead, G-III Apparel’s digital business will continue to exhibit momentum.
Discussing about brand strength, G-III Apparel’s DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris have been experiencing strength for sometime now. Management had earlier anticipated the annual net wholesale sales potential for these five power brands to be $4 billion. GIII is also seeing strength in the outerwear business. The top categories, including comfort casual product, athleisure and casual sportswear are performing well. Jeans across its power brands beat expectations and is a major contributor to its results.
With respect to athleisure and casual sportswear, management is steadily expanding collections to cash in on the consumers' growing demand. Comfort, performance and functionality are driving the athleisure business. DKNY and Karl Lagerfeld Paris footwear business performed outstandingly with net sales being nearly 50% higher than the pre-pandemic levels during the fiscal third quarter.
Earlier, GIII had announced plans to acquire an iconic European luxury fashion brand called Sonia Rykiel, which is likely to strengthen its global footprint in the luxury space.
Conclusion
GIII-Apparel’s efforts to bolster brands across channels with launches, improved marketing strategies and a broader consumer reach will keep yielding results. GIII’s brand strength coupled with sturdy digital efforts and other strategies are likely to retain its momentum on the bourses ahead. A Value Score of B and an expected long-term earnings growth rate of 15% further speak volumes.
Eye These Solid Picks Too
Delta Apparel (DLA - Free Report) , the manufacturer of activewear and lifestyle apparel products, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and earnings per share (EPS) suggests respective growth of 12.3% and 19.1%, from the corresponding year-ago reported figures. DLA has a trailing four-quarter earnings surprise of 21.3%, on average.
Ralph Lauren (RL - Free Report) , the designer and marketer of premium lifestyle products, flaunts a Zacks Rank of 1 at present. RL has an expected EPS growth rate of 15% for three-five years.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 40% and 381.2%, respectively, from the year-ago corresponding figures. RL has a trailing four-quarter earnings surprise of 94.1%, on average.
Gildan Activewear (GIL - Free Report) , the manufacturer and marketer of premium quality branded basic activewear, has a Zacks Rank of 2, currently. GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear current-year sales and EPS suggests respective growth of 8.2% and 9.4% from the year-ago corresponding readings. GIL has an expected EPS growth rate of 9% for three-five years.