We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
G-III Apparel Group, Ltd. (GIII - Free Report) posted mixed third-quarter fiscal 2023 results, wherein the top line beat the Zacks Consensus Estimate, while the bottom line missed the same. Also, revenues grew year over year, while earnings dipped.
The top-line results in the fiscal third quarter benefited from continued progress on its strategic priorities. However, the elevated inventory levels led to logistical challenges within the company’s distribution centers. Nonetheless, GIII’s order book remains sturdy for the fiscal fourth quarter and the company is well poised to serve the demand for the holiday season.
Management has notified that Calvin Klein and Tommy Hilfiger are an important part of its business. G-III Apparel has announced staggering extensions by category starting January 2024 and continuing through December 2027. Management does not anticipate a significant reduction in net sales, net income and cash generation from the aforesaid businesses in the next three years. These extensions are believed to accelerate the long-term strategy.
Over the past three months, the presently Zacks Rank #2 (Buy) player’s shares have gained 3.4% compared with the industry’s 4.9% decline.
Q3 in Detail
G-III Apparel delivered adjusted earnings per share of $1.35, lagging the Zacks Consensus Estimate of $1.85. Also, the figure decreased sharply from $2.18 a share reported in the year-ago fiscal quarter.
GIII Apparel Group, LTD. Price, Consensus and EPS Surprise
Net sales jumped 6.2% from the last fiscal year’s quarterly figure to $1,078.3 million and came above the Zacks Consensus Estimate of $1,072 million.
Gross profit dipped 0.8% year over year to $344.6 million. However, the gross margin of 32% contracted 220 basis points (bps) from the prior-year period’s reading.
SG&A expenses grew 31.5% year over year to $239.9 million. G-III Apparel reported an operating income of $78.4 million, down from $146.7 million recorded in the year-ago fiscal quarter.
Financial Details
G-III Apparel ended the fiscal third quarter with cash and cash equivalents of $150.7 million and total debt of $879.5 million. Total stockholders’ equity was $1,622.3 million. Inventories increased significantly to $901 million at the end of the reported fiscal quarter from $449 million at the end of the year-ago fiscal quarter.
Management also repurchased roughly 800,000 shares for $17 million. GIII had cash and availability under the credit agreement of above $730 million at the end of the reported fiscal quarter.
Outlook
Management updated guidance for fiscal 2023, which takes into account the anticipated impact of the ongoing inflationary pressures on consumers and higher costs related to supply- chain conditions with the timing of goods receipts.
For fiscal 2023, management continues to project net sales of $3.15 billion and a net income of $147-$152 million or $3.00-$3.10 per share. Earlier, management had forecast a net income of $182-$187 million or $3.69-$3.79 per share. GIII recorded net sales of $2.77 billion and a net income of $200.6 million or $4.05 per share in the last fiscal year. This guidance is inclusive of nearly $130 million in net sales and net income of 10 cents per share with respect to the operations of the Karl Lagerfeld business for the seven months in the fiscal year subsequent to Karl Lagerfeld being a wholly-owned subsidiary of the company.
Management predicts an adjusted EBITDA between $265 million and $270 million, indicating a decline from an adjusted EBITDA of $350.2 million reported in fiscal 2022. For fiscal 2023, GIII envisions a net income of $142-$147 million, or $2.90-$3.00 per share.
Wingstop, which franchises and operates restaurants, currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and earnings per share suggests growth of 25.3% and 22.2%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 11% for three-five years.
Oxford Industries is a renowned apparel company and currently has a Zacks Rank #2. OXM has a trailing four-quarter earnings surprise of 91.1%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial-year revenues and EPS suggests growth of 15.3% and 25.7%, respectively, from the earlier corresponding fiscal year’s reported figures.
lululemon, the designer and distributor of athletic apparel and accessories, carries a Zacks Rank of 2. LULU has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and EPS suggests growth of 26.6% and 25.9%, respectively, from the comparable preceding fiscal year’s reported numbers. LULU has a trailing four-quarter earnings surprise of 10.4%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
G-III Apparel's (GIII) Q3 Earnings Miss, Sales Increase Y/Y
G-III Apparel Group, Ltd. (GIII - Free Report) posted mixed third-quarter fiscal 2023 results, wherein the top line beat the Zacks Consensus Estimate, while the bottom line missed the same. Also, revenues grew year over year, while earnings dipped.
The top-line results in the fiscal third quarter benefited from continued progress on its strategic priorities. However, the elevated inventory levels led to logistical challenges within the company’s distribution centers. Nonetheless, GIII’s order book remains sturdy for the fiscal fourth quarter and the company is well poised to serve the demand for the holiday season.
Management has notified that Calvin Klein and Tommy Hilfiger are an important part of its business. G-III Apparel has announced staggering extensions by category starting January 2024 and continuing through December 2027. Management does not anticipate a significant reduction in net sales, net income and cash generation from the aforesaid businesses in the next three years. These extensions are believed to accelerate the long-term strategy.
Over the past three months, the presently Zacks Rank #2 (Buy) player’s shares have gained 3.4% compared with the industry’s 4.9% decline.
Q3 in Detail
G-III Apparel delivered adjusted earnings per share of $1.35, lagging the Zacks Consensus Estimate of $1.85. Also, the figure decreased sharply from $2.18 a share reported in the year-ago fiscal quarter.
GIII Apparel Group, LTD. Price, Consensus and EPS Surprise
GIII Apparel Group, LTD. price-consensus-eps-surprise-chart | GIII Apparel Group, LTD. Quote
Net sales jumped 6.2% from the last fiscal year’s quarterly figure to $1,078.3 million and came above the Zacks Consensus Estimate of $1,072 million.
Gross profit dipped 0.8% year over year to $344.6 million. However, the gross margin of 32% contracted 220 basis points (bps) from the prior-year period’s reading.
SG&A expenses grew 31.5% year over year to $239.9 million. G-III Apparel reported an operating income of $78.4 million, down from $146.7 million recorded in the year-ago fiscal quarter.
Financial Details
G-III Apparel ended the fiscal third quarter with cash and cash equivalents of $150.7 million and total debt of $879.5 million. Total stockholders’ equity was $1,622.3 million. Inventories increased significantly to $901 million at the end of the reported fiscal quarter from $449 million at the end of the year-ago fiscal quarter.
Management also repurchased roughly 800,000 shares for $17 million. GIII had cash and availability under the credit agreement of above $730 million at the end of the reported fiscal quarter.
Outlook
Management updated guidance for fiscal 2023, which takes into account the anticipated impact of the ongoing inflationary pressures on consumers and higher costs related to supply- chain conditions with the timing of goods receipts.
For fiscal 2023, management continues to project net sales of $3.15 billion and a net income of $147-$152 million or $3.00-$3.10 per share. Earlier, management had forecast a net income of $182-$187 million or $3.69-$3.79 per share. GIII recorded net sales of $2.77 billion and a net income of $200.6 million or $4.05 per share in the last fiscal year. This guidance is inclusive of nearly $130 million in net sales and net income of 10 cents per share with respect to the operations of the Karl Lagerfeld business for the seven months in the fiscal year subsequent to Karl Lagerfeld being a wholly-owned subsidiary of the company.
Management predicts an adjusted EBITDA between $265 million and $270 million, indicating a decline from an adjusted EBITDA of $350.2 million reported in fiscal 2022. For fiscal 2023, GIII envisions a net income of $142-$147 million, or $2.90-$3.00 per share.
Eye These Solid Picks Too
Here we highlighted three better-ranked stocks, namely Wingstop (WING - Free Report) , Oxford Industries (OXM - Free Report) and lululemon athletica (LULU - Free Report) .
Wingstop, which franchises and operates restaurants, currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and earnings per share suggests growth of 25.3% and 22.2%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 11% for three-five years.
Oxford Industries is a renowned apparel company and currently has a Zacks Rank #2. OXM has a trailing four-quarter earnings surprise of 91.1%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial-year revenues and EPS suggests growth of 15.3% and 25.7%, respectively, from the earlier corresponding fiscal year’s reported figures.
lululemon, the designer and distributor of athletic apparel and accessories, carries a Zacks Rank of 2. LULU has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and EPS suggests growth of 26.6% and 25.9%, respectively, from the comparable preceding fiscal year’s reported numbers. LULU has a trailing four-quarter earnings surprise of 10.4%, on average.