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G-III Apparel Group (GIII)
NASDAQ:GIII
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G-III Apparel Group
(NASDAQ:GIII)69Neutral
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
$1.12B
Dividend YieldN/A
Average Volume (3M)435.18K
Price to Earnings (P/E)6.7
Beta (1Y)0.53
Revenue Growth-2.57%
EPS GrowthN/A
CountryUS
Employees4,600
SectorConsumer Cyclical
Sector Strength53
IndustryApparel & Luxury
Share Statistics
EPS (TTM)3.82
Shares Outstanding43,886,707
10 Day Avg. Volume594,181
30 Day Avg. Volume435,175
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)-2.50
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
$35.40Price Target Upside37.96% Upside
Rating ConsensusHold
Number of Analyst Covering5
G-III Apparel Group Business Overview & Revenue Model
Company DescriptionG-III Apparel Group, Ltd. is a leading global fashion company specializing in the design, manufacturing, and marketing of a comprehensive range of apparel and accessories. The company's diversified portfolio includes well-known brands such as DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld, among others. G-III operates across various sectors, including women's and men's apparel, outerwear, dresses, sportswear, and handbags, catering to a broad demographic through its wholesale and retail channels.
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 demonstrates a solid financial position with efficient operations and strong cash flow generation. While profitability margins have improved, declining revenue growth and high liabilities in relation to assets present areas to watch. Overall, the company maintains financial stability and operational efficiency, which should support its future performance.Income Statement
The company shows a stable gross profit margin with a slight decrease in total revenue in the TTM (Trailing-Twelve-Months) compared to the previous year. Net profit margin has improved significantly from previous losses, indicating better cost management. The EBIT and EBITDA margins are solid, reflecting efficient operations. However, the revenue growth has been negative, which could be a concern for future profitability.75
Positive
Balance Sheet
The balance sheet indicates a reasonable debt-to-equity ratio, suggesting manageable leverage. Return on equity is healthy, reflecting good profitability relative to shareholder investments. The equity ratio is robust, showcasing financial stability. However, a high level of total liabilities in comparison to assets could pose potential risks if not managed carefully.70
Positive
Cash Flow
The company exhibits strong operating cash flow relative to net income, indicating efficient cash management. Free cash flow has grown substantially, signaling good liquidity and the potential for reinvestment or debt reduction. The free cash flow to net income ratio is favorable, further underscoring the company's solid cash generation capabilities.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.09B | 3.10B | 3.23B | 2.77B | 2.06B | 3.16B | Gross Profit |
| 1.21B | 1.24B | 1.10B | 988.19M | 744.44M | 1.12B | EBIT |
| 276.48M | 283.34M | 268.12M | 311.09M | 82.84M | 227.65M | EBITDA |
| 301.23M | 307.72M | 686.00K | 345.77M | 139.34M | 285.76M | Net Income Common Stockholders |
| 173.64M | 176.17M | -134.38M | 200.59M | 23.55M | 143.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 104.69M | 507.83M | 191.65M | 465.98M | 351.93M | 197.37M | Total Assets |
| 2.78B | 2.68B | 2.71B | 2.74B | 3.76B | 2.57B | Total Debt |
| 526.49M | 652.67M | 446.33M | 232.63M | 205.23M | 312.21M | Net Debt |
| 421.80M | 144.84M | 254.67M | -233.35M | -146.71M | 114.83M | Total Liabilities |
| 1.13B | 1.13B | 1.33B | 1.22B | 2.43B | 1.27B | Stockholders Equity |
| 1.65B | 1.55B | 1.39B | 1.52B | 1.34B | 1.29B |
| Cash Flow | Free Cash Flow | ||||
| 303.50M | 562.90M | -126.21M | 154.29M | 54.63M | 168.93M | Operating Cash Flow |
| 344.30M | 587.58M | -104.60M | 185.80M | 74.76M | 209.02M | Investing Cash Flow |
| -126.64M | -28.33M | -217.96M | -51.51M | -20.13M | -40.09M | Financing Cash Flow |
| -313.08M | -244.63M | 51.63M | -23.44M | 94.78M | -44.48M |
G-III Apparel Group Technical Analysis
Negative
25.66
Price Trends
30.50
Negative
30.95
Negative
29.32
Negative
Market Momentum
-1.35
Positive
28.31
Positive
9.22
Positive
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 25.66 is below the 20-day moving average (MA) of 28.35, below the 50-day MA of 30.50, and below the 200-day MA of 29.32, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 28.31 is Positive, neither overbought nor oversold. The STOCH value of 9.22 is Positive, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.61B | 21.81 | 12.01% | 1.44% | -3.35% | -6.09% | |
69 Neutral | $1.12B | 6.71 | 11.02% | ― | -2.57% | ― | |
67 Neutral | $3.46B | 14.33 | 61.44% | 3.23% | 0.07% | 7.19% | |
67 Neutral | $3.90B | 5.71 | 13.79% | 0.21% | -4.83% | 45.23% | |
66 Neutral | $6.55B | 31.62 | 10.49% | 3.08% | 2.96% | -15.58% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $8.78B | ― | -16.13% | 1.60% | -8.42% | 57.91% |
* Consumer Cyclical Sector Average
Performance Comparison
GIII
G-III Apparel Group
25.66
-4.02
-13.54%
COLM
Columbia Sportswear
84.36
4.56
5.71%
PVH
PVH
71.26
-64.02
-47.32%
VFC
VF
23.45
7.71
48.98%
LEVI
Levi Strauss & Co
16.66
-1.18
-6.61%
KTB
Kontoor Brands
61.62
1.46
2.43%
G-III Apparel Group Earnings Call Summary
Earnings Call Date: Dec 10, 2024 | % Change Since: -18.75% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for G-III Apparel Group, with strong third quarter results and raised earnings guidance indicating effective brand expansion and inventory management. However, challenges such as unseasonable weather, supply chain disruptions, and the transition away from PVH licenses tempered overall performance. Despite these challenges, the company's strategic initiatives in brand growth and international expansion provide optimism for the future.Highlights
Strong Third Quarter Results
Earnings exceeded expectations, driven by over 30% growth in key owned brands (DKNY, Karl Lagerfeld, Donna Karan, Vilebrequin).
Raised Earnings Guidance
Raised earnings per diluted share guidance to a range of $4.10 to $4.20 for fiscal 2025, reflecting strong third quarter performance.
Inventory Management Success
Inventory down 10% from last year's third quarter, well-positioned to support holiday and early spring demand.
Expansion of Key Brands
Significant growth and expansion in floor space and points of sale for Donna Karan, DKNY, and Karl Lagerfeld.
Improved Retail Segment Performance
Retail segment saw a strong double-digit comp sales increase despite closing 7 stores.
Lowlights
Impact of Warm Weather and Supply Chain Disruptions
Unseasonably warm weather and logistical issues, including a port strike, affected sales, costing an estimated $20 to $30 million.
Decline in Calvin Klein and Tommy Hilfiger Businesses
Transitioning out of PVH licenses resulted in a decline of approximately $200 million in net sales this year.
Retail Softness in Key Markets
Retail softness, particularly in France, impacted Vilebrequin's sales despite strong digital sell-throughs.
Increased SG&A Expenses
Non-GAAP SG&A expenses increased to $259 million due to marketing for Donna Karan and DKNY, and investments in talent and technology.
Company Guidance
During G-III's Q3 2025 earnings call, the company raised its full-year non-GAAP earnings per diluted share guidance to $4.10 to $4.20, reflecting strong third-quarter results and strategic initiatives. The quarter saw GAAP earnings per diluted share at $2.59, driven by a 30% growth from owned brands like DKNY and Karl Lagerfeld, alongside gross margin improvements due to a higher penetration of these brands. Net sales for Q3 were $1.09 billion, with a 10% reduction in inventory from the previous year, well-positioned for the holiday season. The company aims for fiscal 2025 net sales of approximately $3.15 billion, a 2% growth year-over-year, despite a decrease in sales from the Calvin Klein and Tommy Hilfiger brands. Adjusted EBITDA for fiscal 2025 is expected between $309 million and $314 million, with a continued focus on enhancing operational capabilities and strategic investments in marketing, talent, and technology.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.