G-III Apparel (GIII) Exceeds Q1 Earnings Expectations, Reports Increase in Sales
G-III Apparel Group, Ltd. (GIII) has released its first-quarter fiscal 2025 earnings, surpassing the Zacks Consensus Estimate despite a year-over-year decline. While sales fell short of the consensus mark, they showed improvement compared to the previous year.
The company’s strategic focus lies in capitalizing on design and merchandising strengths to drive profitable sales growth through innovative products and collections. Key initiatives include expanding its European presence through a partnership with AWWG, enhancing omnichannel capabilities, transforming its North American retail business, and investing significantly in marketing to boost global brand awareness and sales. Additionally, efforts are being made to reduce reliance on PVH brands and expand into fast-growing markets like India and China.
In the past year, shares of this Zacks Rank #3 (Hold) company have surged by 33.5%, outperforming the industry’s 0.3% decline.
Q1 in Detail
Adjusted earnings of 12 cents per share exceeded the Zacks Consensus Estimate of a 5-cent adjusted loss. However, this figure was lower than the adjusted earnings of 13 cents per share reported in the year-ago quarter. Net sales saw a 0.5% year-over-year increase to $609.7 million, slightly missing the consensus estimate of $615 million.
The wholesale segment reported net sales of $598 million, up from $587 million the previous year, while the retail segment achieved net sales of $31 million, showing growth from $30 million in the year-ago quarter despite the closure of nine stores. Gross profit increased by 3.6% to $258.9 million, with the gross margin expanding by 130 basis points year over year to 42.5%.
Financial Outlook
G-III Apparel anticipates net sales of approximately $650 million for the fiscal second quarter, compared to $659.8 million in the prior-year quarter. Adjusted net income is projected to be between $10 million and $15 million, with adjusted earnings ranging from 22 to 32 cents per share. For the full fiscal year 2025, the company expects net sales of around $3.2 billion, indicating a 3% growth from the previous year.
Adjusted net income is forecasted to be between $170 million and $175 million, with adjusted earnings expected to range from $3.58 to $3.68 per share. Adjusted EBITDA is projected to be between $295 million and $300 million.
Key Picks
Some other companies worth considering are Hanesbrands Inc. (HBI), Crocs, Inc. (CROX), and Guess, Inc. (GES). Hanesbrands currently holds a Zacks Rank #1 (Strong Buy), while Crocs and Guess both have a Zacks Rank #2 (Buy) at present.
Hanesbrands has shown impressive growth in its earnings per share, with a 666.7% increase expected for the current financial year. Crocs and Guess are also projected to see growth in sales and EPS for the current financial year.
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