Yahoo Finance G-III Apparel (GIII) Gains 35.3% in a Year: How to Play Ahead?
G-III Apparel Group, Ltd. GIII has demonstrated impressive resilience over the past year, achieving a 35.3% increase in its shares. This growth contrasts sharply with the 7% decline seen in the Zacks Textile - Apparel industry. The company's success can be attributed to its robust omnichannel strategies, expansive market reach and adept financial management.
GIII’s operational prowess has also helped it outperform the broader Zacks Consumer Discretionary sector and the S&P 500’s respective growth of 1.5% and 27.8%. With such strong momentum, the stock appears poised to surpass its 52-week high of $35.66.
From a valuation perspective, G-III Apparel’s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.19, below the five-year median of 7.72 and the industry’s average of 12.36, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the stock currently has a Value Score of A, further validating its appeal.
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Decoding G-III Apparel’s Growth Factors
G-III Apparel is enhancing its e-commerce platforms for DKNY and Karl Lagerfeld Paris by modernizing websites, improving CRM capabilities, and optimizing technical operations. Collaborations with major online retailers like Amazon and Fanatics bolster these digital efforts.
Expanding into Europe through a partnership with AWWG, GIII is utilizing infrastructure in Spain and Portugal, leveraging growth opportunities in the India market. In North America, the company is increasing brand awareness and sales through significant marketing investments, reducing reliance on PVH brands, and expanding into high-growth regions such as India and China. G-III plans to add more than 2,500 retail points of sale across department stores this fall, targeting substantial sales growth.
Performance-wise, G-III Apparel saw notable growth in first-quarter fiscal 2025, with wholesale segment net sales rising to $598 million and retail segment net sales increasing to $31 million despite store closures.
Strong brand development and marketing efforts, including robust double-digit sales growth for DKNY and Karl Lagerfeld, support G-III Apparel's positive outlook. The company reaffirms its fiscal 2025 net sales guidance of $3.2 billion, indicating 3% year-over-year growth, driven by effective brand strategies, strategic investments and efficient cost management.
Conclusion
G-III Apparel is positioned for growth, evidenced by its strong performance and strategic initiatives in fiscal 2025. The company's focus on digital transformation, increased market penetration in Europe and India, and substantial marketing investments in North America to boost global brand awareness and sales point to strong growth prospects. This perspective underscores confidence in G-III Apparel's potential to consistently provide long-term value to investors.
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. Over the past 30 days, analysts have increased the estimate for the current fiscal year by 8 cents, and the consensus estimate is pegged at $3.63 per share. The consensus estimate for the next fiscal year has also been raised by 11 cents to $3.73 per share.
Also, the Zacks Consensus Estimate for current and next years’ sales is pegged at $3.20 billion and $3.30 billion, respectively, suggesting year-over-year growth of 3.3% and 3.2%. G-III Apparel sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Other Promising Stocks
A few other top-ranked stocks are Hanesbrands Inc. HBI, Skechers U.S.A., Inc. SKX and Guess, Inc. GES.
Hanesbrands engages in the designing, manufacturing, sourcing and sale of apparel essentials. The company currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for HBI’s 2024 earnings indicates growth of 666.7% from the 2023 reported figures. HBI has a trailing four-quarter average earnings surprise of 10.2%.
Skechers designs, develops, markets and distributes footwear. The company has a Zacks Rank of 2 (Buy) at present. SKX delivered a 20.9% earnings surprise in the last reported quarter.
The consensus estimate for Skechers’ 2024 sales and earnings indicates growth of 10.6% and 16.9%, respectively, from the 2023 reported figures.
Guess designs, markets, distributes and licenses casual apparel and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Guess’ fiscal 2024 sales indicates growth of 11.7% from the year-ago period’s reported figure. GES has a trailing four-quarter average earnings surprise of 31%.
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Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Hanesbrands Inc. (HBI) : Free Stock Analysis Report
Guess?, Inc. (GES) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
