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G-III Apparel Group, Ltd. (GIII - Free Report) has posted fourth-quarter fiscal 2024 earnings, which beat the Zacks Consensus Estimate and improved year over year. However, sales missed the consensus mark and fell year over year.
The company's diverse business model and disciplined operating approach notably strengthened its financial position. By the end of the year, G-III boasted a net cash position and more than a billion dollars in liquidity, reflecting its robust credit profile and financial health.
G-III has also initiated growth ventures, including the launch of the Donna Karan brand, and the addition of Nautica, Halston and Champion outerwear to its product lineup. These additions are expected to contribute to the company’s performance starting from fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have surged 68%, outperforming the industry’s 28.1% rise in the past year.
G-III Apparel Group, LTD. Price, Consensus and EPS Surprise
Adjusted earnings of 76 cents per share outpaced the Zacks Consensus Estimate of adjusted earnings of 67 cents. Also, the bottom line increased from the year-earlier quarter’s adjusted earnings of 41 cents.
Net sales dipped 10.5% year over year to $764.8 million and missed the Zacks Consensus Estimate of $817 million.
Gross profit slightly increased 0.2% year over year to $281.9 million. We note that the gross margin expanded 390 basis points (bps) year over year to 36.9% in the fiscal fourth quarter. We estimated the gross margin to expand 400 basis points (bps) to 37% in the quarter under review.
SG&A expenses moved up 1.8% year over year to $220.7 million. As a percentage of net sales, this metric increased 350 bps year over year to 28.9%, lagging our estimate of 30.7%. Operating profit was $46.3 million in the fiscal fourth quarter against the operating loss of $292.5 million in the year-earlier quarter. We estimated an operating profit of $43.5 million.
Image Source: Zacks Investment Research
Other Financial Details
G-III Apparel ended fourth-quarter fiscal 2024 with cash and cash equivalents of $507.8 million, and a total debt of $417.8 million. Total stockholders’ equity was $1,550.3 million. Inventory declined 26.6% year over year to $520.4 million at the end of the reported quarter.
The company exited fiscal 2024 with net cash of $90 million and more than $1 billion in liquidity.
Outlook
G-III Apparel has reported a successful fiscal 2024, marking significant strides in its strategic growth and profitability. The company achieved substantial growth in its owned brands, including DKNY, Karl Lagerfeld and Vilebrequin. These brands constituted 47% of fiscal 2024 net sales, a notable increase from the 40% reported in the previous year. This growth underscores G-III's focus on expanding its higher-margin, owned brand portfolio, enhancing its profitability.
G-III Apparel forecasts net sales of $615 million for the first quarter of fiscal 2025, suggesting a slight rise from the $606.6 million recorded in the year-ago period. However, the company expects the bottom line between an adjusted loss of 10 cents per share and breakeven, whereas it reported adjusted earnings of 13 cents in the first quarter of fiscal 2024.
Looking into fiscal 2025, G-III anticipates continued growth through its latest initiatives and the organic expansion of its owned brands. The company is set to invest in global marketing efforts to support its brand launches, and enhance its operational capabilities through investments in talent and technology. With substantial financial flexibility, it is well-positioned to pursue growth initiatives and explore strategic opportunities, aiming to sustain its trajectory of long-term growth.
G-III Apparel has shared its financial outlook for the fiscal year ending Jan 31, 2025, projecting a year of strategic investment and growth. The company anticipates $60 million in incremental expenses mainly due to the launches of Donna Karan, Nautica and Halston. A significant portion of these expenses, approximately 65%, is allocated for marketing initiatives to bolster the Donna Karan and DKNY brands. The rest of the costs are mainly aimed at enhancing operational capabilities through investments in technology and talent.
For fiscal 2025, the company expects net sales of $3.20 billion, whereas it reported $3.10 billion in fiscal 2024. GIII expects adjusted earnings of $3.50-$3.60 per share, suggesting a decrease from adjusted earnings of $4.04 per share reported in fiscal 2024. The company anticipates full-year adjusted EBITDA of $290-$295 million, indicating a decline from $324.1 million in fiscal 2024.
Ralph Lauren, a footwear and accessories dealer, flaunts a Zacks Rank of 1 (Strong Buy) at present. RL has a trailing four-quarter earnings surprise of 18.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and EPS suggests growth of 2.7% and 22.7%, respectively, from the year-ago reported figures.
Crocs is one of the leading footwear brands, with its focus on comfort and style. CROX carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 3.9% and 2.9%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.
PVH Corp specializes in designing and marketing branded dresses. The company has a Zacks Rank of 2 at present. PVH has a trailing four-quarter earnings surprise of 18.9%, on average.
The Zacks Consensus Estimate for PVH Corp’s current fiscal-year sales and EPS suggests growth of 1.2% and 16.6%, respectively, from the year-ago reported figures.
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G-III Apparel (GIII) Q4 Earnings Beat, Sales Decline Y/Y
G-III Apparel Group, Ltd. (GIII - Free Report) has posted fourth-quarter fiscal 2024 earnings, which beat the Zacks Consensus Estimate and improved year over year. However, sales missed the consensus mark and fell year over year.
The company's diverse business model and disciplined operating approach notably strengthened its financial position. By the end of the year, G-III boasted a net cash position and more than a billion dollars in liquidity, reflecting its robust credit profile and financial health.
G-III has also initiated growth ventures, including the launch of the Donna Karan brand, and the addition of Nautica, Halston and Champion outerwear to its product lineup. These additions are expected to contribute to the company’s performance starting from fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have surged 68%, outperforming the industry’s 28.1% rise in the past year.
G-III Apparel Group, LTD. Price, Consensus and EPS Surprise
G-III Apparel Group, LTD. price-consensus-eps-surprise-chart | G-III Apparel Group, LTD. Quote
Q4 in Detail
Adjusted earnings of 76 cents per share outpaced the Zacks Consensus Estimate of adjusted earnings of 67 cents. Also, the bottom line increased from the year-earlier quarter’s adjusted earnings of 41 cents.
Net sales dipped 10.5% year over year to $764.8 million and missed the Zacks Consensus Estimate of $817 million.
Gross profit slightly increased 0.2% year over year to $281.9 million. We note that the gross margin expanded 390 basis points (bps) year over year to 36.9% in the fiscal fourth quarter. We estimated the gross margin to expand 400 basis points (bps) to 37% in the quarter under review.
SG&A expenses moved up 1.8% year over year to $220.7 million. As a percentage of net sales, this metric increased 350 bps year over year to 28.9%, lagging our estimate of 30.7%. Operating profit was $46.3 million in the fiscal fourth quarter against the operating loss of $292.5 million in the year-earlier quarter. We estimated an operating profit of $43.5 million.
Image Source: Zacks Investment Research
Other Financial Details
G-III Apparel ended fourth-quarter fiscal 2024 with cash and cash equivalents of $507.8 million, and a total debt of $417.8 million. Total stockholders’ equity was $1,550.3 million. Inventory declined 26.6% year over year to $520.4 million at the end of the reported quarter.
The company exited fiscal 2024 with net cash of $90 million and more than $1 billion in liquidity.
Outlook
G-III Apparel has reported a successful fiscal 2024, marking significant strides in its strategic growth and profitability. The company achieved substantial growth in its owned brands, including DKNY, Karl Lagerfeld and Vilebrequin. These brands constituted 47% of fiscal 2024 net sales, a notable increase from the 40% reported in the previous year. This growth underscores G-III's focus on expanding its higher-margin, owned brand portfolio, enhancing its profitability.
G-III Apparel forecasts net sales of $615 million for the first quarter of fiscal 2025, suggesting a slight rise from the $606.6 million recorded in the year-ago period. However, the company expects the bottom line between an adjusted loss of 10 cents per share and breakeven, whereas it reported adjusted earnings of 13 cents in the first quarter of fiscal 2024.
Looking into fiscal 2025, G-III anticipates continued growth through its latest initiatives and the organic expansion of its owned brands. The company is set to invest in global marketing efforts to support its brand launches, and enhance its operational capabilities through investments in talent and technology. With substantial financial flexibility, it is well-positioned to pursue growth initiatives and explore strategic opportunities, aiming to sustain its trajectory of long-term growth.
G-III Apparel has shared its financial outlook for the fiscal year ending Jan 31, 2025, projecting a year of strategic investment and growth. The company anticipates $60 million in incremental expenses mainly due to the launches of Donna Karan, Nautica and Halston. A significant portion of these expenses, approximately 65%, is allocated for marketing initiatives to bolster the Donna Karan and DKNY brands. The rest of the costs are mainly aimed at enhancing operational capabilities through investments in technology and talent.
For fiscal 2025, the company expects net sales of $3.20 billion, whereas it reported $3.10 billion in fiscal 2024. GIII expects adjusted earnings of $3.50-$3.60 per share, suggesting a decrease from adjusted earnings of $4.04 per share reported in fiscal 2024. The company anticipates full-year adjusted EBITDA of $290-$295 million, indicating a decline from $324.1 million in fiscal 2024.
Eye These Solid Picks
Some better-ranked companies are Ralph Lauren (RL - Free Report) , Crocs, Inc. (CROX - Free Report) and PVH Corporation (PVH - Free Report) .
Ralph Lauren, a footwear and accessories dealer, flaunts a Zacks Rank of 1 (Strong Buy) at present. RL has a trailing four-quarter earnings surprise of 18.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and EPS suggests growth of 2.7% and 22.7%, respectively, from the year-ago reported figures.
Crocs is one of the leading footwear brands, with its focus on comfort and style. CROX carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 3.9% and 2.9%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.
PVH Corp specializes in designing and marketing branded dresses. The company has a Zacks Rank of 2 at present. PVH has a trailing four-quarter earnings surprise of 18.9%, on average.
The Zacks Consensus Estimate for PVH Corp’s current fiscal-year sales and EPS suggests growth of 1.2% and 16.6%, respectively, from the year-ago reported figures.