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US' G-III Apparel holds FY26 sales forecast, posts higher Q1 earnings
US' G-III Apparel holds FY26 sales forecast, posts higher Q1 earnings

Fibre2Fashion

timea day ago

  • Business
  • Fibre2Fashion

US' G-III Apparel holds FY26 sales forecast, posts higher Q1 earnings

American clothing company G-III Apparel Group has reaffirmed its net sales outlook for fiscal 2026 (FY26) at approximately $3.14 billion, slightly below the $3.18 billion recorded in fiscal 2025. However, it has withdrawn its net income, non-GAAP income, and adjusted EBITDA guidance issued in March due to uncertainty surrounding tariffs and broader macroeconomic conditions. As of June 5, 2025, current tariff rates are expected to add around $135 million in unmitigated costs, largely in the second half of the year. The company aims to offset these impacts through diversified sourcing, selective pricing adjustments, and cost-saving measures, it said in its financial statement. G-III Apparel Group has reaffirmed its FY26 net sales outlook at $3.14 billion but withdrawn earnings guidance due to tariff-related uncertainty, which may add $135 million in costs. Q1 FY26 sales dipped 4 per cent, but net income rose to $7.8 million. Q2 sales are projected to decline year-on-year. The company cut debt by 96 per cent and repurchased $19.7 million in shares. For the second quarter (Q2) ending July 31, 2025, net sales are projected at $570 million, down from $644.8 million year-on-year, impacted by supply chain disruptions and timing shifts in key programmes. Gross margin is expected to remain stable. Net income is forecast between $1 million and $6 million, or $0.02–$0.12 per diluted share, sharply down from $24.2 million, or $0.53 per diluted share, in Q2 FY25. For the first quarter (Q1) ended April 30, 2025, G-III Apparel Group has reported a 4 per cent year-on-year decline in net sales to $583.6 million, down from $609.7 million in the same period last year. Despite the revenue drop, net income rose to $7.8 million, or $0.17 per diluted share, compared to $5.8 million, or $0.12 per diluted share, in Q1 FY25. On a non-GAAP basis, net income per diluted share came in at $0.19, excluding $1.0 million in one-time severance expenses related to a closed warehouse. This adjustment accounted for a $0.02 per share impact. There were no non-GAAP adjustments in the prior year's first quarter. As of the end of the quarter, inventories declined 5 per cent to $456.5 million, while total debt was slashed by 96 per cent to $18.7 million from $426.4 million. The sharp reduction followed the company's voluntary redemption in August 2024 of its $400 million senior secured notes, financed through cash reserves and borrowings from its revolving credit facility, the statement added. Additionally, the company repurchased 807,437 shares for $19.7 million during the quarter, underscoring its continued commitment to shareholder returns. Morris Goldfarb, G-III's chairman and chief executive officer , said, 'G-III delivered solid first quarter results, marked by earnings that exceeded the high end of guidance. Our performance was fuelled by double-digit growth of our key owned brands, DKNY, Karl Lagerfeld and Donna Karan, which largely offset the exit of the Calvin Klein jeans and sportswear businesses. These results underscore the strong demand and desirability of our brand portfolio and are a testament to our team's outstanding execution.' Goldfarb concluded, 'We are reaffirming our net sales guidance for fiscal 2026 and working diligently to mitigate the impact of tariffs. Our experienced management team has a proven track record of successfully navigating periods of uncertainty, and we view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share. As we advance our strategic priorities, we have never been more confident in the global resonance of our brands and the significant growth potential ahead to drive long-term profitability and shareholder value.' Fibre2Fashion News Desk (KD)

Top Stock Movers Now: Tesla, Lululemon, Docusign, and More
Top Stock Movers Now: Tesla, Lululemon, Docusign, and More

Yahoo

time2 days ago

  • Business
  • Yahoo

Top Stock Movers Now: Tesla, Lululemon, Docusign, and More

U.S. equities jumped at midday as the U.S. economy added more jobs in May than expected. Tesla shares rebounded from yesterday's big selloff as CEO Elon Musk and President Donald Trump seem to be pulling back on their war of words that rattled investors. Lululemon Athletica and G-III Apparel Group both warned tariffs will drag down earnings.U.S. equities were higher at midday when the Labor Department reported May job creation was better than anticipated. The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose. Tesla (TSLA) was the best-performing stock in the S&P 500 as the feud between CEO Elon Musk and President Donald Trump that sent the stock reeling yesterday appeared to ease. Shares of Coinbase Global (COIN) and Robinhood Markets (HOOD) rose as the entire cryptocurrency industry got a boost from continued enthusiasm for USDC stablecoin issuer Circle Internet Group (CRCL), which again saw shares soar after skyrocketing nearly 170% in their trading debut yesterday. Shares of oil producers, including Chevron (CVX) and Exxon Mobil (XOM), were up on optimism of a trade deal between the U.S. and China. Lululemon Athletica (LULU) shares plunged when the athletic clothing maker slashed its guidance, warning tariffs would hurt profits. Another apparel company, DKNY owner G-III Apparel Group (GIII), also said tariffs would cut into earnings, and withdrew its outlook, sending shares down. Docusign (DOCU) shares tumbled after the e-signature software maker reported lower-than-expected billings, and cut its full-year billings forecast because of its moves to shift to an artificial intelligence (AI) model. Oil futures advanced. Gold prices fell. The yield on the 10-year Treasury note was higher. The U.S. dollar gained on the euro, pound, and yen. Most major cryptocurrencies were higher. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

G-III Apparel Group (GIII) Surpasses Q1 Earnings and Revenue Estimates
G-III Apparel Group (GIII) Surpasses Q1 Earnings and Revenue Estimates

Yahoo

time2 days ago

  • Business
  • Yahoo

G-III Apparel Group (GIII) Surpasses Q1 Earnings and Revenue Estimates

G-III Apparel Group (GIII) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 58.33%. A quarter ago, it was expected that this clothing and accessories maker would post earnings of $0.97 per share when it actually produced earnings of $1.27, delivering a surprise of 30.93%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. G-III Apparel , which belongs to the Zacks Textile - Apparel industry, posted revenues of $583.61 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.59%. This compares to year-ago revenues of $609.75 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. G-III Apparel shares have lost about 15.2% since the beginning of the year versus the S&P 500's gain of 1%. While G-III Apparel has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for G-III Apparel: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $620.3 million in revenues for the coming quarter and $4.22 on $3.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Oxford Industries (OXM), is yet to report results for the quarter ended April 2025. The results are expected to be released on June 11. This owner of the Tommy Bahama, Lilly Pulitzer and Southern Tide clothing lines is expected to post quarterly earnings of $1.82 per share in its upcoming report, which represents a year-over-year change of -31.6%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level. Oxford Industries' revenues are expected to be $385.23 million, down 3.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report Oxford Industries, Inc. (OXM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio

G-III Apparel Group, Ltd. Reports First Quarter Fiscal 2026 Results
G-III Apparel Group, Ltd. Reports First Quarter Fiscal 2026 Results

Yahoo

time2 days ago

  • Business
  • Yahoo

G-III Apparel Group, Ltd. Reports First Quarter Fiscal 2026 Results

Net Income Per Diluted Share of $0.17 for the First Quarter Compared to $0.12 Last Year and Non-GAAP Net Income Per Diluted Share of $0.19 for the First Quarter Compared to $0.12 Last Year, Both Exceeding Guidance Net Sales of $583.6 Million for the First Quarter Compared to $609.7 Million Last Year Repurchases of $19.7 Million or 807,437 Shares in the First Quarter Reaffirms Net Sales Guidance for Fiscal 2026 NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- G-III Apparel Group, Ltd. (NasdaqGS: GIII) ('G-III' or the 'Company') today reported results for the first quarter of fiscal 2026, ended April 30, 2025. Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said, 'G-III delivered solid first quarter results, marked by earnings that exceeded the high end of guidance. Our performance was fueled by double-digit growth of our key owned brands, DKNY, Karl Lagerfeld and Donna Karan, which largely offset the exit of the Calvin Klein jeans and sportswear businesses. These results underscore the strong demand and desirability of our brand portfolio and are a testament to our team's outstanding execution.' Mr. Goldfarb concluded, 'We are reaffirming our net sales guidance for fiscal 2026 and working diligently to mitigate the impact of tariffs. Our experienced management team has a proven track record of successfully navigating periods of uncertainty, and we view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share. As we advance our strategic priorities, we have never been more confident in the global resonance of our brands and the significant growth potential ahead to drive long-term profitability and shareholder value.' Results of Operations First Quarter Fiscal 2026 Net sales for the first quarter ended April 30, 2025 decreased 4% to $583.6 million compared to $609.7 million in the prior year's quarter. Net income for the first quarter ended April 30, 2025 was $7.8 million, or $0.17 per diluted share, compared to $5.8 million, or $0.12 per diluted share, in the prior year's quarter. Non-GAAP net income per diluted share was $0.19 for the first quarter ended April 30, 2025 compared to $0.12 in the same period last year. Non-GAAP net income per diluted share in the first quarter of fiscal 2026 excludes $1.0 million in one-time severance expenses related to a closed warehouse. There were no non-GAAP adjustments during the first quarter of fiscal 2025. The effect of this exclusion was equal to $0.02 per diluted share in the first quarter of this year. Balance Sheet as of First Quarter Fiscal 2026 Inventories decreased 5% to $456.5 million this year compared to $479.7 million last year. Total debt decreased 96% to $18.7 million this year compared to $426.4 million last year. In August 2024, we voluntarily redeemed the entire $400.0 million principal amount of our senior secured notes (the 'Notes') at a redemption price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest. The payment was made with cash on hand and borrowings from the revolving credit facility. Capital Allocation Share repurchases of 807,437 for $19.7 million were made in the first quarter ended April 30, 2025. Outlook The Company has reaffirmed its net sales outlook for fiscal 2026. Due to uncertainty around tariffs and related macroeconomic conditions, the Company has withdrawn its net income, non-GAAP net income and adjusted EBITDA guidance for fiscal 2026 issued on March 13, 2025. Based on the tariff rates in place on June 5, 2025, the Company anticipates the unmitigated cost of tariffs on goods imported into the United States will result in additional expense of approximately $135.0 million, which is expected to primarily be weighted to the second half of the year. The Company is diligently working to offset these costs through (i) diversifying our sourcing mix and vendor discounts, (ii) selective price increases and (iii) other cost saving initiatives. In addition, the Company today provided its outlook for its second quarter ending July 31, 2025. Fiscal 2026 Net sales are expected to be approximately $3.14 billion. This compares to net sales of $3.18 billion for fiscal 2025. As previously planned, the Company continues to expect sales in the first half of fiscal 2026 to be lower as compared to the previous year, with acceleration expected in the second half of fiscal 2026. Second Quarter Fiscal 2026 Net sales for the second quarter of fiscal 2026 are expected to be approximately $570.0 million. Net sales are expected to be negatively impacted by supply chain challenges and timing shifts in certain programs into the second half of this year. This compares to net sales of $644.8 million in last year's second quarter. Gross margins are expected to be comparable to the prior year's second quarter. Net income for the second quarter of fiscal 2026 is expected to be between $1.0 million and $6.0 million, or diluted earnings per share between $0.02 and $0.12. This compares to net income of $24.2 million, or $0.53 per diluted share, in last year's second quarter. Non-GAAP Financial Measures Reconciliations of GAAP net income to non-GAAP net income, GAAP net income per diluted share to non-GAAP net income per diluted share and GAAP net income to adjusted EBITDA are presented in tables accompanying the financial statements included in this release and provide useful information to evaluate the Company's operational performance. A description of the amounts excluded on a non-GAAP basis are provided in conjunction with these tables. Non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA should be evaluated in light of the Company's financial statements prepared in accordance with GAAP. About G-III Apparel Group, Ltd. G-III Apparel Group, Ltd., a global leader in fashion with expertise in design, sourcing and marketing, owns and licenses a portfolio of over 30 preeminent brands. The Company is differentiated across unique brand propositions, product categories and consumer touch points. G-III owns ten iconic brands including, DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin, and licenses over 20 brands including Calvin Klein, Tommy Hilfiger, Nautica, Halston, Converse, BCBG and National Sports leagues, among others. Statements concerning G-III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, risks related to the reliance on licensed product, risks relating to G-III's ability to increase revenues from sales of its other products, new acquired businesses or new license agreements as licenses for Calvin Klein and Tommy Hilfiger product expire on a staggered basis, reliance on foreign manufacturers, risks of doing business abroad, supply chain disruptions, risks related to acts of terrorism and the effects of war, the current economic and credit environment risks related to our indebtedness, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business, risks related to G-III's ability to reduce the losses incurred in its retail operations, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions, the impact on G-III's business of the imposition of tariffs by the United States government and business and general economic conditions, including inflation and higher interest rates, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release. G-III APPAREL GROUP, LTD. AND SUBSIDIARIES(Nasdaq: GIII)CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share amounts) Three Months Ended April 30, 2025 2024 (Unaudited) Net sales $ 583,609 $ 609,747 Cost of goods sold 337,065 350,854 Gross profit 246,544 258,893 Selling, general and administrative expenses 231,495 236,621 Depreciation and amortization 6,573 8,768 Operating profit 8,476 13,504 Other income (loss) 3,462 (223 ) Interest and financing charges, net (461 ) (5,424 ) Income before income taxes 11,477 7,857 Income tax expense 3,718 2,305 Net income 7,759 5,552 Less: loss attributable to noncontrolling interests — (250 ) Net income attributable to G-III Apparel Group, Ltd. $ 7,759 $ 5,802 Net income attributable to G-III Apparel Group, Ltd. per common share: Basic $ 0.18 $ 0.13 Diluted $ 0.17 $ 0.12 Weighted average shares outstanding: Basic 43,748 45,484 Diluted 45,385 46,734 Selected Balance Sheet Data (in thousands): As of April 30, 2025 2024 (Unaudited) Cash and cash equivalents $ 257,785 $ 508,434 Working capital 817,509 1,140,449 Inventories 456,482 479,671 Total assets 2,415,873 2,565,399 Total debt 18,742 426,351 Operating lease liabilities 269,922 224,452 Total stockholders' equity 1,684,094 1,519,875 G-III APPAREL GROUP, LTD. AND SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME(In thousands) Three Months Ended April 30, 2025 April 30, 2024 (Unaudited) GAAP net income attributable to G-III Apparel Group, Ltd. $ 7,759 $ 5,802 Excluded from non-GAAP: One-time warehouse related severance expenses 978 — Income tax impact of non-GAAP adjustments (316 ) — Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined $ 8,421 $ 5,802 Non-GAAP net income is a 'non-GAAP financial measure' that excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. There were no non-GAAP exclusions for the first quarter of fiscal 2025. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.G-III APPAREL GROUP, LTD. AND SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP NET INCOME PER SHARE Three Months Ended April 30, 2025 April 30, 2024 (Unaudited) GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share $ 0.17 $ 0.12 Excluded from non-GAAP: One-time warehouse related severance expenses 0.03 — Income tax impact of non-GAAP adjustments (0.01 ) — Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined $ 0.19 $ 0.12 Non-GAAP diluted net income per common share is a 'non-GAAP financial measure' that excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. There were no non-GAAP exclusions for the first quarter of fiscal 2025. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. G-III APPAREL GROUP, LTD. AND SUBSIDIARIESRECONCILIATION OF NET INCOME TO ADJUSTED EBITDA(In thousands) Three Months Ended April 30, 2025 April 30, 2024 (Unaudited) Net income attributable to G-III Apparel Group, Ltd. $ 7,759 $ 5,802 One-time warehouse related severance expenses 978 — Depreciation and amortization 6,573 8,768 Interest and financing charges, net 461 5,424 Income tax expense 3,718 2,305 Adjusted EBITDA, as defined $ 19,489 $ 22,299 Adjusted EBITDA is a 'non-GAAP financial measure' which represents earnings before depreciation and amortization, interest and financing charges, net and income tax expense and excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. Adjusted EBITDA is being presented as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry. Adjusted EBITDA should not be construed as an alternative to net income, as an indicator of the Company's operating performance, or as an alternative to cash flows from operating activities as a measure of the Company's liquidity, as determined in accordance with GAAP. G-III APPAREL GROUP, LTD. AND SUBSIDIARIESRECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME TO FORECASTED AND ACTUAL NON-GAAP NET INCOME(In thousands) Forecasted Three Actual Three Months Ending Months Ended July 31, 2025 July 31, 2024 (Unaudited) Net income attributable to G-III Apparel Group, Ltd. $ 1,000 - 6,000 $ 24,212 Excluded from non-GAAP: Gain on forgiveness of liabilities — (600 ) Income tax impact of non-GAAP adjustments — 168 Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined $ 1,000 - 6,000 $ 23,780 Non-GAAP net income is a 'non-GAAP financial measure' that excludes in fiscal 2025 the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own. The income tax impact of non-GAAP adjustments is calculated using the effective tax for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. G-III APPAREL GROUP, LTD. AND SUBSIDIARIESRECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME PER SHARE TO FORECASTED AND ACTUAL NON-GAAP NET INCOME PER SHARE Forecasted Three Actual Three Months Ending Months Ended July 31, 2025 July 31, 2024 (Unaudited) GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share $ 0.02 - 0.12 $ 0.53 Excluded from non-GAAP: Gain on forgiveness of liabilities — (0.01 ) Income tax impact of non-GAAP adjustments — — Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined $ 0.02 - 0.12 $ 0.52 Non-GAAP diluted net income per common share is a 'non-GAAP financial measure' that excludes in fiscal 2025 the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own. The income tax impact of non-GAAP adjustments is calculated using the effective tax for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. G-III Apparel Group, Ltd. Company Contact:Priya TrivediSVP of Investor Relations and Treasurer(646) 473-5228

Investors in G-III Apparel Group (NASDAQ:GIII) have seen impressive returns of 146% over the past five years
Investors in G-III Apparel Group (NASDAQ:GIII) have seen impressive returns of 146% over the past five years

Yahoo

time11-03-2025

  • Business
  • Yahoo

Investors in G-III Apparel Group (NASDAQ:GIII) have seen impressive returns of 146% over the past five years

While G-III Apparel Group, Ltd. (NASDAQ:GIII) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 26% in the last quarter. But that scarcely detracts from the really solid long term returns generated by the company over five years. Indeed, the share price is up an impressive 146% in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Of course, that doesn't necessarily mean it's cheap now. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. View our latest analysis for G-III Apparel Group While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, G-III Apparel Group moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We know that G-III Apparel Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think G-III Apparel Group will grow revenue in the future. G-III Apparel Group shareholders are down 12% for the year, but the market itself is up 10%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 20%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with G-III Apparel Group , and understanding them should be part of your investment process. We will like G-III Apparel Group better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

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