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G-III Apparel (GIII) Up 12.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for G-III Apparel Group (GIII - Free Report) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is G-III Apparel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
G-III Apparel posted better-than-expected earnings in third-quarter fiscal 2024, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. However, sales missed the consensus mark and fell year over year. Adjusted earnings of $2.78 per share outpaced the consensus estimate of earnings of $2.08 per share. Also, the bottom line increased from the year-earlier quarter’s earnings of $1.35 per share.
Quarterly results reflected the company's ability to successfully navigate tough market conditions. Also, moderation in freight costs and disciplined inventory management were tailwinds.
Q3 in Detail
Net sales dipped 1% year over year to $1,067.1 million and missed the Zacks Consensus Estimate of $1,131 million. Lower sales at the wholesale division, offset by higher sales at the retail unit, aided the overall top line. Net sales for the Wholesale segment were $1.05 billion, down from $1.07 billion recorded in the last-year period and the metric at the Retail segment was $33 million, up 13.8% from the prior-year quarter’s reported figure.
The company’s brands, DKNY, Karl Lagerfeld, Donna Karan and Bergan experienced another period of sturdy double-digit increase year over year. Its key international brands also saw robust sales growth.
Moreover, gross profit jumped 25.8% year over year to $433.4 million. SG&A expenses dipped 1.5% year over year to $236.3 million. Further, operating income was $190.3 million in the fiscal third quarter compared with $97.2 million in the year-earlier quarter.
The company has announced that it has appointed Dana Perlman as its new Chief Growth and Operations Officer, who will oversee Strategy, Finance, Communications, Information Technology, and other Operating functions.
Other Financial Details
G-III Apparel ended third-quarter fiscal 2024 with cash and cash equivalents of $197.4 million and total debt of $461.9 million. Total stockholders’ equity was $1,503.2 million. Inventory declined 34% to $592 million at the end of the reported quarter. It had a net debt position of about $265 million at the quarter end.
The company exited the quarter in a solid financial position with $840 million in cash and availability. It utilized $100 million to pay down $75 million of debt and $26 million of share repurchases. G-III Apparel had 10 million shares available in its buyback program.
Outlook
Management raised GAAP and non-GAAP net income per share guidance for fiscal 2024. For fiscal 2024, management projects net sales to be about $3.15 billion and net income to be $175-$180 million, or between $3.75 per share and $3.85 per share. This compares with net sales of $3.23 billion and a net loss of $(133.1) million, or $(2.79) per share, for fiscal 2023.
The company envisions adjusted net income in the band of $182-$187 million, or between $3.90 per share and $4.00 per share. This compares with adjusted net income of $138.8 million, or $2.85 per share, for fiscal 2023. Management estimates adjusted EBITDA to be $317-$322 million for fiscal 2024 versus adjusted EBITDA of $266.1 million in fiscal 2023. It anticipates ending the year with the gross margin up nearly 600 bps from fiscal 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, G-III Apparel has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, G-III Apparel has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
G-III Apparel is part of the Zacks Textile - Apparel industry. Over the past month, PVH (PVH - Free Report) , a stock from the same industry, has gained 12.7%. The company reported its results for the quarter ended October 2023 more than a month ago.
PVH reported revenues of $2.36 billion in the last reported quarter, representing a year-over-year change of +3.6%. EPS of $2.90 for the same period compares with $2.60 a year ago.
PVH is expected to post earnings of $3.48 per share for the current quarter, representing a year-over-year change of +46.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PVH. Also, the stock has a VGM Score of D.
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G-III Apparel (GIII) Up 12.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for G-III Apparel Group (GIII - Free Report) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is G-III Apparel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
G-III Apparel’s Q3 Earnings Beat, Sales Improve Y/Y
G-III Apparel posted better-than-expected earnings in third-quarter fiscal 2024, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. However, sales missed the consensus mark and fell year over year. Adjusted earnings of $2.78 per share outpaced the consensus estimate of earnings of $2.08 per share. Also, the bottom line increased from the year-earlier quarter’s earnings of $1.35 per share.
Quarterly results reflected the company's ability to successfully navigate tough market conditions. Also, moderation in freight costs and disciplined inventory management were tailwinds.
Q3 in Detail
Net sales dipped 1% year over year to $1,067.1 million and missed the Zacks Consensus Estimate of $1,131 million. Lower sales at the wholesale division, offset by higher sales at the retail unit, aided the overall top line. Net sales for the Wholesale segment were $1.05 billion, down from $1.07 billion recorded in the last-year period and the metric at the Retail segment was $33 million, up 13.8% from the prior-year quarter’s reported figure.
The company’s brands, DKNY, Karl Lagerfeld, Donna Karan and Bergan experienced another period of sturdy double-digit increase year over year. Its key international brands also saw robust sales growth.
Moreover, gross profit jumped 25.8% year over year to $433.4 million. SG&A expenses dipped 1.5% year over year to $236.3 million. Further, operating income was $190.3 million in the fiscal third quarter compared with $97.2 million in the year-earlier quarter.
The company has announced that it has appointed Dana Perlman as its new Chief Growth and Operations Officer, who will oversee Strategy, Finance, Communications, Information Technology, and other Operating functions.
Other Financial Details
G-III Apparel ended third-quarter fiscal 2024 with cash and cash equivalents of $197.4 million and total debt of $461.9 million. Total stockholders’ equity was $1,503.2 million. Inventory declined 34% to $592 million at the end of the reported quarter. It had a net debt position of about $265 million at the quarter end.
The company exited the quarter in a solid financial position with $840 million in cash and availability. It utilized $100 million to pay down $75 million of debt and $26 million of share repurchases. G-III Apparel had 10 million shares available in its buyback program.
Outlook
Management raised GAAP and non-GAAP net income per share guidance for fiscal 2024. For fiscal 2024, management projects net sales to be about $3.15 billion and net income to be $175-$180 million, or between $3.75 per share and $3.85 per share. This compares with net sales of $3.23 billion and a net loss of $(133.1) million, or $(2.79) per share, for fiscal 2023.
The company envisions adjusted net income in the band of $182-$187 million, or between $3.90 per share and $4.00 per share. This compares with adjusted net income of $138.8 million, or $2.85 per share, for fiscal 2023. Management estimates adjusted EBITDA to be $317-$322 million for fiscal 2024 versus adjusted EBITDA of $266.1 million in fiscal 2023. It anticipates ending the year with the gross margin up nearly 600 bps from fiscal 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, G-III Apparel has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, G-III Apparel has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
G-III Apparel is part of the Zacks Textile - Apparel industry. Over the past month, PVH (PVH - Free Report) , a stock from the same industry, has gained 12.7%. The company reported its results for the quarter ended October 2023 more than a month ago.
PVH reported revenues of $2.36 billion in the last reported quarter, representing a year-over-year change of +3.6%. EPS of $2.90 for the same period compares with $2.60 a year ago.
PVH is expected to post earnings of $3.48 per share for the current quarter, representing a year-over-year change of +46.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PVH. Also, the stock has a VGM Score of D.