Breaking News
0

G-III Apparel (GIII) Q4 Earnings Likely To Rise: Here's Why

By Zacks Investment ResearchStock MarketsMar 17, 2019 11:40PM ET
www.investing.com/analysis/giii-apparel-giii-q4-earnings-likely-to-rise-heres-why-200398741
G-III Apparel (GIII) Q4 Earnings Likely To Rise: Here's Why
By Zacks Investment Research   |  Mar 17, 2019 11:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

G-III Apparel Group, Ltd. (NASDAQ:GIII) is scheduled to report fourth-quarter fiscal 2019 results on Mar 21, before market open. The company’s bottom line has outperformed the Zacks Consensus Estimate in each of the trailing four quarters by a wide margin. Let’s see what awaits this quarterly release.

How are Estimates Faring?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 44 cents, reflecting an increase of about 69% from the year-ago quarter. We note that the consensus mark has remained stable over the past 30 days. Moreover, G-III Apparel’s earnings surprise history has been encouraging. If all goes well, this will be the company’s eighth consecutive quarter of earnings beat. For revenues, the consensus mark stands at $768.2 million, reflecting a rise of 7.5% from the year-ago quarter’s figure.

For fiscal 2019, the Zacks Consensus Estimate for earnings is pegged at $2.76, reflecting an increase of 72.5% year over year. For revenues, the consensus estimate stands at $3.08 billion.

G-III Apparel Group, LTD. Price, Consensus and EPS Surprise

Let’s delve deeper and find out the factors driving the results.

Factors That Hold Key to G-III Apparel’s Performance

G-III Apparel is gaining from robust wholesale business as well as strength in DKNY stores. The company’s sturdy wholesale business coupled with increased same-store sales at DKNY brands aided top-line growth in the fiscal third quarter. Encouragingly, management expects wholesale business to continue growing in the upcoming periods.

Apart from this, the company has undertaken several strategies including acquisitions and licensing of well-known brands to expand product portfolio and make itself a diversified apparel and accessories company.

Furthermore, acquisitions and licensing agreements over the years have led to the emergence of the company’s five global power brands — DKNY, Donna Karen, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld — that are poised to deliver solid long-term growth. The company expects its wholesale outerwear businesses to perform well in the upcoming quarters and remain well placed to exploit opportunities therein. G-III Apparel is also set to bring in new products and strengthen its ties with retailers besides rationalizing its store base in a bid to improve retail business.

With new launches, improved marketing strategies and consumer reach, GIII-Apparel remains on track with the process of bolstering brands across channels. It also plans to make efficient utilization of digital and social media platforms. These factors make us hopeful about its upcoming results.

For fiscal 2019, management provided an encouraging view. Net sales are expected to be $3.08 billion compared with $2.08 billion registered a year ago. Also, the bottom line is anticipated to be in the range of $2.67-$2.77 per share compared with the year-ago adjusted earnings of $1.60.

What Does the Zacks Model Say?

Our proven model shows that G-III Apparel is likely to beat estimates in fourth-quarter fiscal 2019. This is because a stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

G-III Apparel has a Zacks Rank #3 and an Earnings ESP of +0.92%, making us reasonably confident about an earnings beat.

Stocks With Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post earnings beat.

Darden Restaurants, Inc. (NYSE:DRI) has an Earnings ESP of +1.07% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) has an Earnings ESP of +1.34% and a Zacks Rank #2.

PVH Corp. (NYSE:PVH) has an Earnings ESP of +1.14% and a Zacks Rank #3.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>



Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report

Darden Restaurants, Inc. (DRI): Free Stock Analysis Report

PVH Corp. (PVH): Free Stock Analysis Report

G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report

Original post

Zacks Investment Research
G-III Apparel (GIII) Q4 Earnings Likely To Rise: Here's Why
 
G-III Apparel (GIII) Q4 Earnings Likely To Rise: Here's Why

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email