Back to top

Image: Bigstock

Factors Setting the Tone for G-III Apparel (GIII) Q1 Earnings

Read MoreHide Full Article

G-III Apparel Group, Ltd. (GIII - Free Report) is likely to witness deterioration in the top and bottom lines when it reports first-quarter fiscal 2021 results. The Zacks Consensus Estimate for the first quarter is currently pegged at a loss of 51 cents per share, whereas it reported earnings of 25 cents in the year-ago period. The consensus mark for loss has widened over the past 30 days. Further, the consensus mark for revenues stands at $447 million, indicating a decline of 29.5% from the year-ago period’s reported figure.

Notably, G-III Apparel delivered a positive earnings surprise of 10.3% in the last reported quarter and 7.6%, on average, in the trailing four quarters.

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

Key Factors to Note

G-III Apparel’s retail business has been dismal for a while due to weakness in underlying brands. To top it, the coronavirus outbreak-led temporary retail store closures are likely to have weighed on the company’s sales in the quarter under review. However, management informed that it offered ongoing pay and benefits to employees affected by the store closures.

Though the company lowered its retail business employees by more than 80% via furloughs and staff reductions from Apr 6, it notified that all furloughed full-time associates will be entitled to the existing healthcare benefits. Speaking of its wholesale unit, management furloughed around 60% associates effective Apr 6, who will continue to receive healthcare benefits. These pose threats to margins. Apart from this, the company remains exposes to the risk of adverse currency fluctuations.

Nonetheless, GIII-Apparel’s focus on improving brands through better marketing strategies and consumer reach bodes well. To this end, the company has also been making better utilization of digital and social media platforms. Further, it has been benefiting from its growth strategies, including acquisitions and licensing of well-known brands, to expand product portfolio and make itself a diversified apparel and accessories company.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

G-III Apparel carries a Zacks Rank #3 and an Earnings ESP of +6.67%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combinations

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.

Lovesac Company (LOVE - Free Report) currently has an Earnings ESP of +11.17% and a Zacks Rank #2.

Big Lots (BIG - Free Report) presently has an Earnings ESP of +19.01% and a Zacks Rank #3.

Darden Restaurant (DRI - Free Report) currently has an Earnings ESP of +12.82% and a Zacks Rank #3.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>