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G-III Apparel Group (GIII)
NASDAQ:GIII
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G-III Apparel Group
(NASDAQ:GIII)
Rating:72Outperform
Price Target:
$31.00
▲(16.72% Upside)
Positive Factors
Strong Owned Brand Growth
The growth in key owned brands indicates a robust market position and potential for sustained revenue, enhancing G-III's competitive edge.
Solid Financial Position
A strong cash position provides financial flexibility for strategic investments and resilience against economic fluctuations.
Efficient Cash Generation
Efficient cash generation relative to profit supports ongoing operations and strategic growth initiatives, ensuring long-term sustainability.
Negative Factors
Impact of Tariffs on Profitability
Increased tariff costs are pressuring margins, potentially affecting profitability and necessitating strategic adjustments to maintain competitiveness.
Challenges with Licensed Brands
Transitioning from key licensed brands could lead to revenue volatility, requiring effective brand management to offset potential losses.
Expected Reduction in Sales
A projected decline in sales due to license expirations and a cautious retail environment may impact revenue growth and market positioning.
G-III Apparel Group (GIII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)637.63K
Price to Earnings (P/E)6.6
Beta (1Y)0.50
Revenue Growth1.19%
EPS Growth1.62%
CountryUS
Employees3,500
SectorConsumer Cyclical
Sector Strength82
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.25
Shares Outstanding42,215,473
10 Day Avg. Volume916,855
30 Day Avg. Volume637,631
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda3.55
Forecast
1Y Price Target
$28.20Price Target Upside6.17% Upside
Rating ConsensusHold
Number of Analyst Covering5
G-III Apparel Group Business Overview & Revenue Model
Company DescriptionG-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 MoneyG-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 Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strong financial position, growth in key owned brands, and successful marketing initiatives, but also notes significant challenges due to tariffs, softness in certain product categories, and the transition from licensed brands like Calvin Klein and Tommy Hilfiger. The company is cautiously optimistic about future growth driven by owned brands and strategic initiatives.Q2-2026 Updates
Positive Updates
Exceeding Expectations in Net Sales
Net sales for the second quarter were $613 million, well ahead of guidance, driven by the Wholesale segment.
Strong Financial Position
Ending the quarter in a net cash position of $286 million after repurchasing $25 million in shares, compared to last year's net neutral cash position.
Growth in Key Owned Brands
DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin continue to show healthy growth and are expected to grow at a mid-single-digit rate this year.
Expansion in Retail and Strategic Initiatives
Consolidating warehouse networks, optimizing North American operations, and investing in technology and infrastructure for improved efficiency.
Successful Marketing Campaigns
High visibility campaigns featuring cultural icons like Paris Hilton and Hailey Bieber have garnered billions of impressions, boosting brand engagement.
Positive Brand Performance and Expansion
Brands such as Donna Karan and Karl Lagerfeld have seen increased door counts and better penetration, with Donna Karan projected to potentially become a $1 billion brand in the coming years.
Negative Updates
Impact of Tariffs on Profitability
Gross margin percentage decreased to 40.8% from 42.8% in the previous year due to higher-than-expected tariff costs.
Challenges with Calvin Klein and Tommy Hilfiger
Disproportionate reduction in open to buy for these brands due to transitioning out of licenses, leading to a cautious outlook for the second half of the year.
Decline in Overall Net Income
Non-GAAP net income for the second quarter was $11 million, down from $24 million in the previous year.
Softness in Certain Product Categories
Footwear category experiencing softness, and challenges in transitioning production out of China.
Increased Tariff Costs
Total incremental cost of tariffs expected to be approximately $155 million, impacting the fiscal 2026 outlook.
Expected Reduction in Fiscal Year Sales
Fiscal year 2026 net sales expected to decrease by approximately 5% compared to the previous year due to expiration of licenses and cautious retail environment.
Company Guidance
During the second quarter of fiscal 2026, G-III Apparel Group provided comprehensive guidance that reflected both strong performance and future challenges. The company reported net sales of $613 million, exceeding their guidance, with key owned brands like DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin driving sales momentum. However, gross margins were impacted by higher-than-expected tariff costs. The fiscal 2026 guidance anticipates net sales of approximately $3.02 billion, with non-GAAP diluted earnings per share projected between $2.55 and $2.75. Adjusted EBITDA is expected to range from $198 million to $208 million. The company is strategically navigating cost pressures, especially from tariffs, by leveraging vendor participation, sourcing shifts, and price increases. Despite the cautious outlook from retail partners and the impact of exiting Calvin Klein and Tommy Hilfiger licenses, G-III remains focused on expanding its owned brands, which are expected to grow at a mid-single-digit rate this year. The company ended the quarter with a net cash position of $286 million after repurchasing $25 million in shares, compared to a net neutral cash position last year.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.72
Positive
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.68
Positive
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.75
Positive
| 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
Neutral
26.56
Price Trends
25.07
Positive
25.14
Positive
27.26
Negative
Market Momentum
0.51
Positive
53.22
Neutral
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Neutral. The current price of 26.56 is below the 20-day moving average (MA) of 26.67, above the 50-day MA of 25.07, and below the 200-day MA of 27.26, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GIII.
G-III Apparel Group Risk Analysis
G-III Apparel Group disclosed 30 risk factors in its most recent earnings report. G-III Apparel Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
G-III Apparel Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.10B | 25.16 | 32.55% | 1.07% | 9.61% | 21.14% | |
73 Outperform | $3.90B | 9.09 | 9.32% | 0.19% | -1.14% | -29.30% | |
72 Outperform | $1.12B | 6.58 | 11.32% | ― | 1.19% | 1.62% | |
61 Neutral | $18.17B | 12.71 | -2.56% | 3.03% | 1.42% | -15.85% | |
55 Neutral | $5.80B | 68.42 | 7.83% | 2.42% | -7.41% | ― | |
55 Neutral | $2.20B | 13.99 | 154.00% | ― | -27.88% | ― | |
47 Neutral | $2.06B | 20.64 | 5.50% | ― | -8.02% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
GIII
G-III Apparel Group
26.56
-5.18
-16.32%
HBI
Hanesbrands
6.22
-0.57
-8.39%
PVH
PVH
81.05
-14.67
-15.33%
RL
Ralph Lauren
315.14
136.36
76.27%
UA
Under Armour
4.76
-2.68
-36.02%
VFC
VF
14.86
-2.95
-16.56%
G-III Apparel Group Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
G-III Apparel Group Holds Annual Stockholders Meeting
Neutral
Jun 16, 2025
On June 12, 2025, G-III Apparel Group held its Annual Meeting of Stockholders, where 39,435,553 shares were represented. During the meeting, stockholders elected thirteen directors, approved the compensation of named executive officers on an advisory basis, and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future executive compensation and financial oversight.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.