G-III Apparel Group (GIII) AI Stock Analysis

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G-III Apparel Group

(NASDAQ:GIII)

63Neutral

G-III Apparel Group's strong financial foundation, characterized by a robust balance sheet, contrasts with challenges in revenue and cash flow. Despite a positive earnings call and undervaluation indicated by a low P/E ratio, technical indicators suggest bearish momentum. The stock's score reflects these mixed signals, with a focus on potential recovery backed by strategic initiatives and brand performance.

Positive Factors

Brand Development

G-III is developing its owned and licensed brand opportunities, particularly in the DKNY and Karl Lagerfeld brands, which is seen as a growth area.

Management and Partnerships

The management team of G-III Apparel, led by experienced leaders, has established longstanding relationships with many larger retail partners, which is expected to benefit the company.

Negative Factors

Revenue Loss

G-III Apparel is facing an additional loss of approximately $1 billion of revenues due to the unexpected takeback of the PVH Calvin Klein and Tommy Hilfiger women’s licenses.

G-III Apparel Group (GIII) vs. S&P 500 (SPY)

Market Cap

$1.10B

Dividend YieldN/A

Average Volume (3M)787.78K

Price to Earnings (P/E)5.9

Beta (1Y)0.45

Revenue Growth2.66%

EPS Growth14.16%

CountryUS

Employees3,500

SectorConsumer Cyclical

Sector Strength55

IndustryApparel - Manufacturers

Share Statistics

EPS (TTM)4.28

Shares Outstanding43,883,205

10 Day Avg. Volume796,552

30 Day Avg. Volume787,778

Financial Highlights & Ratios

PEG Ratio0.42

Price to Book (P/B)N/A

Price to Sales (P/S)0.37

Price to Cash Flow (P/CF)-2.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$29.00

Price Target Upside15.35% Upside

Rating ConsensusHold

Number of Analyst Covering4

G-III Apparel Group Business Overview & Revenue Model

Company DescriptionG-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores. The company also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is headquartered in New York, New York.

How the Company Makes MoneyG-III Apparel Group generates revenue primarily through the wholesale distribution of its branded apparel and accessories to department stores, specialty retailers, and mass merchants. The company also earns income from direct-to-consumer sales via its owned retail stores and e-commerce platforms. Licensing agreements play a significant role, as G-III holds licenses to produce and sell products under prestigious brand names, which contributes to its earnings. Partnerships with major fashion brands and strategic acquisitions further bolster G-III's financial performance by expanding its product offerings and market reach.

G-III Apparel Group Financial Statement Overview

Summary

G-III Apparel Group maintains a strong balance sheet with minimal debt and strong equity ratios. However, the company faces challenges with declining revenues, profitability, and negative cash flows, impacting its ability to invest and grow. The stability provided by its strong balance sheet supports potential recovery.

Income Statement

Positive

G-III Apparel Group has demonstrated fluctuating revenue trends with a recent decline in TTM revenues compared to previous years. The gross profit margin for the TTM stands at 40.3%, which is solid, but the net profit margin is low at 6.2% due to declining revenues and profitability. The EBIT and EBITDA margins are 9.6% and 10.3% respectively, indicating moderate operational efficiency.

Balance Sheet

Positive

The company maintains a strong equity position with a debt-to-equity ratio of 0.004 in the TTM, indicating minimal leverage. The return on equity (ROE) is 8.6%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio of 67.6% highlights a stable financial foundation with ample equity financing relative to its total assets.

Cash Flow

Neutral

G-III Apparel Group faces challenges in cash flow management with negative operating and free cash flows in the TTM, indicating potential liquidity issues. The free cash flow to net income ratio is -0.34, which is concerning. However, the operating cash flow to net income ratio of -0.12 suggests some ability to convert earnings into cash flow, albeit at a reduced capacity.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
3.18B	3.10B	3.23B	2.77B	2.06B
	Gross Profit
1.30B	1.24B	1.10B	988.19M	744.44M
	EBIT
293.07M	283.34M	268.12M	311.09M	82.84M
	EBITDA
316.14M	307.72M	686.00K	345.77M	139.34M
	Net Income Common Stockholders
193.57M	176.17M	-134.38M	200.59M	23.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.44M	507.83M	191.65M	465.98M	351.93M
	Total Assets
2.48B	2.68B	2.71B	2.74B	3.76B
	Total Debt
277.68M	652.67M	446.33M	232.63M	205.23M
	Net Debt
96.24M	144.84M	254.67M	-233.35M	-146.71M
	Total Liabilities
803.75M	1.13B	1.33B	1.22B	2.43B
	Stockholders Equity
1.68B	1.55B	1.39B	1.52B	1.34B
Cash Flow		Free Cash Flow
273.11M	562.90M	-126.21M	154.29M	54.63M
	Operating Cash Flow
316.40M	587.58M	-104.60M	185.80M	74.76M
	Investing Cash Flow
-148.15M	-28.33M	-217.96M	-51.51M	-20.13M
	Financing Cash Flow
-485.51M	-244.63M	51.63M	-23.44M	94.78M

G-III Apparel Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.14

Price Trends

50DMA

27.63

Negative

100DMA

29.76

Negative

200DMA

29.10

Negative

Market Momentum

MACD

-0.19

Negative

RSI

51.60

Neutral

STOCH

74.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Negative. The current price of 25.14 is below the 20-day moving average (MA) of 26.38, below the 50-day MA of 27.63, and below the 200-day MA of 29.10, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIII.

G-III Apparel Group Risk Analysis

G-III Apparel Group disclosed 30 risk factors in its most recent earnings report. G-III Apparel Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

G-III Apparel Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	79 Outperform	$11.93B	17.61	27.57%	1.81%	5.23%	24.63%
PVH	73 Outperform	$3.47B	6.25	11.67%	0.25%	-6.13%	-2.63%
GIII	63 Neutral	$1.10B	5.88	11.99%	―	2.66%	14.16%
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%
UA	52 Neutral	$2.22B	―	-6.12%	―	-7.47%	-131.70%
HBI	45 Neutral	$1.72B	―	-43.06%	―	-29.44%	-1343.00%
VFC	44 Neutral	$4.39B	―	-16.13%	3.70%	-8.42%	57.91%

* Consumer Cyclical Sector Average

Performance Comparison

GIII

G-III Apparel Group

25.14

-2.77

-9.92%

HBI

Hanesbrands

4.46

-0.60

-11.86%

PVH

70.70

-37.51

-34.66%

Ralph Lauren

194.67

32.29

19.89%

Under Armour

4.98

-1.41

-22.07%

VFC

12.42

-0.44

-3.42%

G-III Apparel Group Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -0.79% | Next Earnings Date: Jun 5, 2025

Earnings Call Sentiment Neutral

The earnings call outlined strong performance in terms of record earnings and successful brand launches, particularly with owned brands. However, challenges remain, including significant sales declines for Calvin Klein and Tommy Hilfiger, and the impact of the Hudson Bay bankruptcy. The overall sentiment is balanced with notable achievements and ongoing challenges.

Highlights

Record Non-GAAP Earnings

The company achieved record non-GAAP earnings per share of $4.42 in fiscal 2025, an increase of 9% over the previous year.

Successful Brand Launches

Four new brands were launched, contributing significantly to top-line growth. The Donna Karan relaunch exceeded expectations, showing strong profitability.

Strong Performance of Key Owned Brands

Key owned brands like DKNY, Karl Lagerfeld, and Donna Karan grew over 20%, contributing to a 2.7% increase in annual net sales to $3.18 billion.

Improved Gross Margins

Gross margin percentage expanded by approximately 70 basis points to 40.8% for the full fiscal year.

Retail Segment Turnaround

Retail segment losses in North America were cut in half, adding over $15 million to the bottom line.

Lowlights

Decline in Calvin Klein and Tommy Hilfiger Sales

Net sales declines of $188 million for Calvin Klein and Tommy Hilfiger brands were noted, representing a significant portion of the previous fiscal year's revenue.

Impact of Hudson Bay Bankruptcy

The bankruptcy of Hudson Bay negatively affected fourth-quarter results, with adjustments made for future fiscal numbers.

Challenges with China Tariffs

The company faced challenges due to 20% China tariffs, particularly affecting the outerwear category, though plans are in place to mitigate this.

Company Guidance

The guidance provided in the call highlighted several key metrics and strategic initiatives for G-III Apparel Group in fiscal year 2025 and beyond. The company reported a remarkable 9% increase in non-GAAP earnings per share to $4.42, surpassing expectations, and achieved a top-line growth of 2.7% with net sales reaching $3.18 billion. Notably, the owned brands such as DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin saw over 20% growth, offsetting declines in the Calvin Klein and Tommy Hilfiger businesses. The Donna Karan relaunch was particularly successful, expected to grow by approximately 40% going forward. The retail segment in North America showed a turnaround, cutting losses by half, while an approximate 20% investment in All We Wear Group (AWWG) is set to accelerate international growth. For fiscal 2026, G-III anticipates net sales of approximately $3.14 billion, with non-GAAP diluted EPS between $4.15 to $4.25. The company plans to expand its owned brands' global market share, enhance its omnichannel capabilities, and integrate AI to streamline operations. Adjusted EBITDA for fiscal 2026 is expected to be between $310 million and $315 million, with capital expenditures projected at $50 million to support brand launches and technology investments.

G-III Apparel Group Corporate Events

Executive/Board ChangesRegulatory Filings and Compliance

G-III Apparel Group Announces PSU Awards Agreement

Neutral

Mar 21, 2025

On March 21, 2025, G-III Apparel Group, Ltd. announced the signing of a report by Neal S. Nackman, the Chief Financial Officer, in accordance with the Securities Exchange Act of 1934. This announcement pertains to the Performance Share Unit (PSU) awards granted to the company’s Named Executive Officers, including Morris Goldfarb, Sammy Aaron, Jeffrey Goldfarb, Dana Perlman, and Neal S. Nackman.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.