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G-III Apparel (GIII) to Report Q3 Earnings: What to Expect

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G-III Apparel Group, Ltd. (GIII - Free Report) is likely to report top-line growth from the respective year-ago fiscal quarter’s reported figure in its third-quarter fiscal 2023 results on Dec 1, before market open. The consensus mark for quarterly revenues is pegged at $1,072 million, indicating a 5.6% increase from the year-ago fiscal quarter’s tally.

The Zacks Consensus Estimate for earnings in the fiscal third quarter currently stands at $1.85 per share, indicating a 14.4% decline from the year-ago fiscal period’s reported figure. The consensus estimate has been stable in the past 30 days.

A glimpse of G-III Apparel’s performance in the trailing four quarters shows that it has an earnings surprise of 20.8%, on average.

Key Factors to Note

G-III Apparel’s quarterly performance is most likely to have been driven by solid gains from its digital business and brand strength. Management is focused on enhancing digital growth via investments in internal talent and e-commerce sites, and improved logistics capabilities. GIII is quite optimistic about its five global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris.

In addition, GIII is benefiting from assortments and products resonating well with consumer demand. Additionally, its strategic licensing agreements and international business remain positives. All the aforesaid tailwinds are expected to have boosted G-III Apparel’s sales performance in the to-be-reported fiscal quarter.

On the flip side, a tough operating landscape, including inflationary pressures on consumers and higher costs related to supply-chain snarls, remains a headwind. This coupled with any deleverage in SG&A expenses might hurt G-III Apparel’s earnings results in the to-be-reported fiscal quarter. On its last earnings call, management had projected an adjusted net income of $87-$92 million or $1.80-$1.90 per share, indicating a decrease from $107.9 million or $2.18 reported in the year-ago fiscal quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for G-III Apparel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is precisely the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. price-eps-surprise | GIII Apparel Group, LTD. Quote

G-III Apparel has a Zacks Rank #2 and an Earnings ESP of +0.68%.

More Stocks With Favorable Combination

Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.

Dollar General (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. DG is likely to register top-line growth from the year-ago fiscal quarter’s tally in its third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.55 per share, suggesting 22.6% growth from the year-ago fiscal quarter’s tally. The consensus mark has increased a penny in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +12.58% and a Zacks Rank #3. CASY is likely to register top-line growth from the year-earlier fiscal quarter’s actuals when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.16 billion, suggesting 27.5% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Casey's General Stores’ earnings for the fiscal second quarter is pegged at $3.10 per share, suggesting 19.7% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. CASY delivered an earnings beat of 1.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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