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G-III Apparel (GIII) Looks Good on Digital & Brand Strength

·4 min read

G-III Apparel Group, Ltd. GIII appears well poised on the back of its robust digital gains and strength in the global power brands. Management is focused on updating websites to offer a seamless customer experience and continuously strengthens its power brands through innovations and licensing agreements. GIII is quite optimistic about its global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris.

These strengths have aided GIII’s shares to gain 4.5% in the past six months against the industry’s 17.1% decline. A Value Score of A for this currently Zacks Rank #3 (Hold) stock further underlines its attractiveness.

Encouragingly, the Zacks Consensus Estimate for GIII’s fiscal 2023 sales and earnings is currently pegged at $3.2 billion and $4.38 per share, respectively. These estimates suggest increases of 13.8% and 8.2% each from the corresponding year-ago reported figures.

More on Strategies

G-III Apparel strives to become the best omni-channel organization and is focused on boosting its digital presence. During first-quarter fiscal 2023, digital sales of GIII’s product grew approximately 60% from the pre-pandemic levels. Direct-to-consumer sales grew in solid double digits from the pre-pandemic levels and wholesale sales almost doubled. Vilebrequin also saw a good quarter.

Management is also consistently advancing its digital platforms, which are likely to offer immersive brand content to engage consumers, thus facilitating conversion and leveraging sales tools, such as virtual selling. It is steadily investing in data analytics capabilities to better know the consumers across channels and boost their shopping experiences.

Additionally, G-III Apparel is experiencing immense strength in its outerwear business. Management is focused on driving the casual divisions, such as jeans, athleisure, casual sportswear and footwear. These businesses continue to perform impressively. Strength in dressier footwear and fashion sneakers for DKNY and Karl Lagerfeld Paris has also been aiding performance for a while. Moreover, the handbag business for Calvin Klein, DKNY and Karl Lagerfeld Paris is performing well.

GIII remains committed to driving power brands across categories and expanding the portfolio through ownership of brands and licensing. G-III Apparel also announced the acquisition of Karl Lagerfeld, marking an exciting milestone and executing a strategic priority. Management is focused on expanding its international business as well. GIII-Apparel’s efforts to bolster brands across channels with launches, improved marketing strategies and a broader consumer reach will keep yielding favorable results ahead.

All in all, G-III Apparel seems well positioned in the future on the back of its solid brand strength coupled with sturdy digital endeavors and other strategic efforts.

Eye These Solid Picks

Here we highlighted three better-ranked stocks, namely, Designer Brands DBI, Chico's FAS CHS and Capri Holdings CPRI.

Designer Brands designs, manufactures and retails footwear and accessories. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Designer Brands’ current financial-year revenues and earnings per share (EPS) suggests growth of 6.9% and 16.5%, respectively, from the corresponding year-ago reported figures. DBI has a trailing four-quarter earnings surprise of 102.5%, on average.

Chico's FAS, an omni-channel specialty retailer also flaunts a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 330.6%, on average.

The Zacks Consensus Estimate for Chico's FAS’ current financial-year sales and EPS suggests growth of 18.8% and 80%, respectively, from the year-ago period.

Capri Holdings, a global fashion luxury group consisting of iconic brands Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank #2 (Buy) at present. CPRI has an expected EPS growth rate of 11.3% for three-five years.

The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and EPS suggests growth of 3% and 9.8%, respectively, from the corresponding year-ago reported numbers.


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