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

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

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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.

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