G-III Apparel Group, Ltd. (GIII) delivered a blowout quarter with both earnings and revenue outpacing the Street’s expectations driven by elevated consumer demand. Shares soared 10.7% to close at $34.80 on June 7.
G-III designs, sources, and markets apparel and accessories under owned, licensed, and private label brands.
Earnings for the quarter stood at $0.53 per share, beating analysts’ estimates of $0.15 per share. The company reported a loss of $0.82 per share in the prior-year period.
Net sales came in at $519.91 million, up 28.3% year-over-year, and surpassed the Street’s estimate of $462.03 million. (See G-III Apparel stock analysis on TipRanks)
Morris Goldfarb, Chairman and CEO of the company said, “With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating and our overall business in North America is getting stronger… We believe we are well-positioned to capitalize on consumer demand as the year progresses and are optimistic about this fiscal year.”
For the second quarter, the company forecasts net sales of $460 million and earnings in the range of $0.03 – $0.13 per share. The Street estimates revenue of $485.8 million and earnings of $0.07 per share.
For the full Fiscal year 2022, the company projects net sales of $2.57 billion and earnings of between $2.60 and $2.70 per share. Consensus estimates for revenue and earnings are pegged at $2.53 billion and $2.41 per share, respectively.
Following the results, B Riley Financial analyst Susan Anderson maintained a Buy rating on the stock and lifted the price target to $41 (17.8% upside potential) from $39.
The stock has a Hold consensus rating based on 2 Buys, 3 Holds, and 1 Sell. The GIII average analyst price target of $34.67 implies that GIII shares are fully priced at current levels. Shares have gained 93.1% over the past year.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in GIII is currently Neutral, as 4 hedge funds decreased their cumulative holdings of GIII stock by 140,700 shares in the last quarter.