G-III Apparel Group (GIII) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 431.47K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.60
• Revenue Growth: 1.19%
• EPS Growth: 1.62%
• Country: US
• Employees: 3,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.25
• Shares Outstanding: 42,215,473
• 10 Day Avg. Volume: 286,827
• 30 Day Avg. Volume: 431,470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.84
• Enterprise Value/Ebitda: 3.55
• 1Y Price Target: $28.40
• Price Target Upside: 1.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $30.00 ▲(7.64% Upside)

G-III Apparel Group's overall stock score reflects its strong financial performance and attractive valuation, despite challenges highlighted in the earnings call. The company's strategic focus on owned brands and solid financial position provide a foundation for potential growth, while technical indicators suggest a neutral market sentiment.

Positive Factors

Strong Financial Position

A strong cash position enhances financial flexibility, allowing G-III to invest in growth opportunities and weather economic fluctuations, supporting long-term stability.

Growth in Owned Brands

The growth of owned brands strengthens G-III's market position and reduces reliance on licensed brands, providing a more controlled and profitable revenue stream.

Expansion in Retail and Strategic Initiatives

Strategic investments in infrastructure and operations improve efficiency and scalability, positioning G-III for sustained growth and competitive advantage.

Negative Factors

Impact of Tariffs on Profitability

Increased tariff costs pressure margins, potentially limiting profitability and cash flow, which could impact G-III's ability to invest in growth initiatives.

Challenges with Licensed Brands

Transitioning away from key licensed brands may lead to short-term revenue declines and requires successful brand repositioning to mitigate long-term impacts.

Expected Reduction in Fiscal Year Sales

A projected decline in sales due to license expirations and a cautious retail environment could challenge revenue growth and necessitate strategic adjustments.

G-III Apparel Group Business Overview & Revenue Model

Company Description

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores. The company also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is headquartered in New York, New York.

How the Company Makes Money

G-III Apparel Group generates revenue primarily through the wholesale distribution of its branded apparel to department stores, specialty retailers, and other outlets. The company also earns revenue from its owned retail stores and e-commerce platforms. Key revenue streams include sales from licensed brands, which contribute significantly to earnings, as G-III holds exclusive rights to design and sell products under popular labels. Additionally, strategic partnerships and collaborations with major retailers enhance market reach and drive sales. Seasonal collections and trend-responsive designs allow G-III to capitalize on changing consumer preferences, further boosting revenue potential.

G-III Apparel Group Financial Statement Overview

Summary

G-III Apparel Group presents a robust financial profile with strong profitability and a solid balance sheet, supported by efficient cash flow management. While revenue and profit margins depict favorable trends, attention should be given to operational efficiency and equity fluctuations to sustain growth.

Income Statement

The company exhibits solid profitability with a TTM gross profit margin of 40.34% and a net profit margin of 6.24%. Revenue growth has been steady over recent periods, reflecting a strong market position. However, the decline in EBIT and EBITDA margins compared to historical highs suggests pressure on operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 69.73% in TTM, indicating strong asset backing. The debt-to-equity ratio stands at a manageable 0.17, highlighting prudent leverage. However, fluctuations in stockholders' equity over time pose a potential risk.

Cash Flow

Free cash flow has shown a positive growth trajectory with a notable free cash flow to net income ratio of 1.68 in TTM, suggesting efficient cash generation relative to profit. However, the volatility in operating cash flow over past periods needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.10B	3.18B	3.10B	3.23B	2.77B	2.06B
Gross Profit	1.24B	1.30B	1.24B	1.10B	988.19M	744.44M
EBITDA	291.94M	316.14M	307.72M	686.00K	345.77M	139.34M
Net Income	182.25M	193.57M	176.17M	-134.38M	200.59M	23.55M
Balance Sheet
Total Assets	2.69B	2.48B	2.68B	2.71B	2.74B	3.76B
Cash, Cash Equivalents and Short-Term Investments	301.78M	181.44M	507.83M	191.65M	465.98M	351.93M
Total Debt	15.48M	277.68M	652.67M	446.33M	232.63M	205.23M
Total Liabilities	982.46M	803.75M	1.13B	1.33B	1.22B	2.43B
Stockholders Equity	1.71B	1.68B	1.55B	1.39B	1.52B	1.34B
Cash Flow
Free Cash Flow	289.00M	273.11M	562.90M	-126.21M	154.29M	54.63M
Operating Cash Flow	315.37M	316.40M	587.58M	-104.60M	185.80M	74.76M
Investing Cash Flow	-48.32M	-148.15M	-28.33M	-217.96M	-51.51M	-20.13M
Financing Cash Flow	-422.73M	-485.51M	-244.63M	51.63M	-23.44M	94.78M

G-III Apparel Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Positive. The current price of 27.87 is above the 20-day moving average (MA) of 27.28, above the 50-day MA of 27.02, and above the 200-day MA of 26.38, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIII.

G-III Apparel Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	―	$19.85B	26.44	32.55%	1.05%	9.61%	21.14%
GIII	―	$1.18B	6.90	11.32%	―	1.19%	1.62%
COLM	―	$2.85B	13.69	12.93%	2.31%	0.81%	4.86%
PVH	―	$4.04B	9.40	9.32%	0.18%	-1.14%	-29.30%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	―	$5.69B	64.40	6.39%	2.47%	-4.56%	―
UA	―	$1.95B	19.34	5.50%	―	-8.02%	―

G-III Apparel Group Corporate Events

G-III Apparel’s Earnings Call: Optimism Amid Challenges

G-III Apparel Group’s recent earnings call painted a picture of cautious optimism, highlighting a robust financial standing and growth in key owned brands. Despite facing challenges such as tariffs and transitioning from licensed brands like Calvin Klein and Tommy Hilfiger, the company remains optimistic about future growth, driven by its owned brands and strategic initiatives.

G-III Apparel Group Reports Strong Q2 Results

G-III Apparel Group, Ltd. is a global fashion leader specializing in the design, sourcing, distribution, and marketing of a diverse portfolio of over 30 brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, as well as licensed names like Calvin Klein and Tommy Hilfiger.