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G-III Apparel (GIII) Soars 5.5%: Is Further Upside Left in the Stock?

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G-III Apparel Group (GIII - Free Report) shares ended the last trading session 5.5% higher at $27.93. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.5% loss over the past four weeks.

The all-cash deal to acquire remaining 81% stake in famed fashion brand Karl Lagerfeld from a group of investors led by Fred Gehring of Amlon Capital sent shares of G-III Apparel up on the bourses. This $210 million transaction is expected to conclude in the second or third quarter of fiscal 2023. The buyout will enhance G-III Apparel’s global presence. Management foresees retail sales opportunity in excess of $2 billion from Karl Lagerfeld brand. G-III Apparel has nurtured the brand since acquiring a 19% stake in 2015.

This clothing and accessories maker is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +7.6%. Revenues are expected to be $601.42 million, up 15.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For G-III Apparel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GIII going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

G-III Apparel is part of the Zacks Textile - Apparel industry. Oxford Industries (OXM - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $90.03. OXM has returned -0.6% in the past month.

Oxford Industries' consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $2.76. Compared to the company's year-ago EPS, this represents a change of +46%. Oxford Industries currently boasts a Zacks Rank of #1 (Strong Buy).


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