HomeMarket NewsSmall CapsG-III Apparel Faces Analyst Skepticism Post-Q4 Earnings Report

G-III Apparel Faces Analyst Skepticism Post-Q4 Earnings Report

Actionable Trade Ideas

always free

g iii apparel group logo

G-III Apparel Group Ltd GIII revealed a mixed bag of financial results post the fourth quarter conclusion on Thursday.

G-III Apparel faced a 10.5% year-on-year sales drop in the fourth quarter of FY24, with revenues resting at $764.78 millionโ€”a figure that lagged behind the analystโ€™s average prediction of $817.48 million. However, the adjusted EPS stood at 76 cents, surpassing the anticipated 68 cents as reported by Benzinga Pro.

The operating margin settled at 6.1%, yielding an operating income of $46.3 million during the quarter.

Morris Goldfarb, the Chairman and CEO of G-III, expressed, โ€œThis year marked a pivotal moment for G-III as we embarked on our journey towards the future, all while maintaining a robust profitability margin. Noteworthy growth was witnessed with DKNY, Karl Lagerfeld, and Vilebrequin, elevating our owned brandsโ€™ share to 47% of fiscal 2024 net sales from 40% last year. Operating with a diverse model and disciplined strategy not only allowed us to reinforce our credit standing but also culminated in us ending the year with a net cash position, brimming with over a billion dollars in liquidity.โ€

G-III projected a sales target of $3.20 billion for FY25, slightly lower than the $3.203 billion estimate. The company envisioned an adjusted EPS range between $3.50 and $3.60 for FY25โ€”a contrast to the market consensus of $3.89, with an anticipated Adjusted EBITDA of $290 million to $295 million.

Looking forward, G-III forecasted first-quarter net sales touching $615 million, with an adjusted EPS ranging from $(0.10) to $0.00 against the forecasted $0.12.

The shares of G-III dipped by 12.1%, wrapping up Thursdayโ€™s trading session at $26.67.

Post-earnings announcement, analysts adjusted their price predictions for G-III Apparel.

  • Telsey Advisory Group revised the price target for G-III Apparel, lowering it from $30 to $29. Analyst Dana Telsey from Telsey Advisory Group upheld a Market Perform rating.
  • Wells Fargo slashed the price target for G-III Apparel from $24 to $23, with analyst Matthew Gulmi maintaining an Underweight rating.


Check This Out: Top 3 Health Care Stocks That Are Ticking Portfolio Bombs

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.