G-III Apparel Group, Ltd. (NASDAQ:GIII) Just Released Its Full-Year Earnings: Here's What Analysts Think
It's been a mediocre week for G-III Apparel Group, Ltd. (NASDAQ:GIII) shareholders, with the stock dropping 11% to US$26.19 in the week since its latest annual results. It was a credible result overall, with revenues of US$3.1b and statutory earnings per share of US$3.75 both in line with analyst estimates, showing that G-III Apparel Group is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for G-III Apparel Group
Following the latest results, G-III Apparel Group's five analysts are now forecasting revenues of US$3.20b in 2025. This would be a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 6.6% to US$3.60 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.23b and earnings per share (EPS) of US$3.88 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$28.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on G-III Apparel Group, with the most bullish analyst valuing it at US$34.00 and the most bearish at US$23.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that G-III Apparel Group's rate of growth is expected to accelerate meaningfully, with the forecast 3.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, G-III Apparel Group is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$28.50, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for G-III Apparel Group going out to 2026, and you can see them free on our platform here..
You can also view our analysis of G-III Apparel Group's balance sheet, and whether we think G-III Apparel Group is carrying too much debt, for free on our platform here.
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This 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.
