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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) appears well poised on the back of robust digital gains and strength in its global power brands. We note that G-III Apparel’s digital business continues to perform well. Management is focused on updating websites to offer a seamless customer experience. GIII is quite optimistic about its powerful brands like DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris.

Apparently, shares of this currently Zacks Rank #3 (Hold) player have increased 29.1% in a year, outperforming the industry’s 16.6% rally.

Let’s Delve Deeper

G-III Apparel is progressing well with the improvements across the digital platforms for DKNY and Karl Lagerfeld Paris. These sites are likely to offer an immersive brand content to engage consumers, thus facilitating conversion and leveraging sales tools, such as virtual selling. GIII is steadily investing in data analytics capabilities to better know the consumers across channels and boost their shopping experiences.

Compared to the scenario two years ago, sales on its partner sites increased more than 45% and above 60% on its sites during third-quarter fiscal 2022. In China, digital sales were stronger than store sales. Vilebrequin's digital sales also increased.
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Coming to brand progress, G-III Apparel has been experiencing strength in the outerwear business for a while. Also, 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 the overall results. Handbags for DKNY, Calvin Klein and Karl Lagerfeld Paris are also witnessing strength.

With respect to athleisure and casual sportswear, GIII is consistently expanding collections to cash in on consumers' growing demand. G-III Apparel looks forward to adding a cleaner new fits for colder weather. Comfort, performance and functionality are driving the athleisure business.

G-III Apparel had also successfully launched the Karl Lagerfeld Paris women's brand across Macy's (M - Free Report) . Thus, GIII is well-positioned with the diversified product categories across its DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris to cater to growing demand. In the fiscal third quarter, DKNY and Karl Lagerfeld Paris footwear business performed outstandingly with net sales nearly 50% higher than the pre-pandemic levels.

Although G-III Apparel’s retail business has been disappointing for some time now, management successfully completed the restructuring of the retail segment by permanently shutting the underperforming Wilsons Leather and G.H. Bass stores.

What’s More?

Given sturdy demand across the brands, G-III Apparel is positioned well for the holiday period. Management raised the view for fiscal 2022, ending Jan 31, 2022. For fiscal 2022, G-III Apparel projects net sales of $2.77 billion, up from the prior view of $2.70 billion. It forecasts net income between $180 million and $190 million compared with $155-$165 million estimated earlier. Management envisioned earnings per share of $3.65-$3.75, higher than $3.10-$3.20 guided previously.

The Zacks Consensus Estimate for fiscal 2022 sales and earnings is currently pegged at $2.75 billion and $3.72, respectively, indicating growth of 34% and 417% each from the corresponding year-ago reported figures.

GIII-Apparel remains on track to bolster brands across channels with launches, improved marketing strategies and a broader consumer reach.

Eye These Solid Picks

Delta Apparel (DLA - Free Report) , the manufacturer of activewear and lifestyle apparel products, sports a Zacks Rank #1 (Strong Buy) at present. The stock has surged 49.4% in the year-to-date period. 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 growth of 11.6% and 9.4%, respectively, from the year-ago period’s corresponding figures. DLA has a trailing four-quarter earnings surprise of 95.5%, on average.

PVH Corp. (PVH - Free Report) , a leading apparel company, holds a Zacks Rank of 2 (Buy), currently. PVH has a trailing four-quarter earnings surprise of 72.3%, on average. Shares of PVH have jumped 9.9% year to date.

The Zacks Consensus Estimate for PVH Corp.’s current-year sales and EPS suggests growth of 27.6% and 571.6%, respectively, from the year-ago period’s corresponding readings. PVH has an expected EPS growth rate of 38.5% for three-five years.


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Macy's, Inc. (M) - free report >>

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GIII Apparel Group, LTD. (GIII) - free report >>

Delta Apparel, Inc. (DLA) - free report >>