Here's How G-III Apparel (GIII) is Poised Ahead of Q3 Earnings
G-III Apparel Group, Ltd. GIII is likely to post top and bottom-line increases from the respective year-ago quarter’s reported figures when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,131 million, indicating a 4.9% rise from the year-ago fiscal quarter’s tally.
The consensus mark for earnings in the fiscal third quarter is currently $2.08 per share, which shows an increase of 54.1% from the year-ago fiscal quarter. The consensus estimate has been stable in the past 30 days.
G-III Apparel’s performance in the trailing four quarters reflects an average earnings surprise of 526.6%.
Key Factors to Note
G-III Apparel’s quarterly performance is likely to reflect gains from initiatives such as building its own brands, acquiring new businesses and enhancing its private-label business. Management has been focused on enhancing digital growth via investments in e-commerce sites and logistics capabilities. GIII is quite optimistic about its global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. These tailwinds are likely to have boosted the company’s performance during the quarter under discussion.
On its last earnings call, management had projected net sales to be $1.13 billion for the fiscal third quarter. The company had expected improved operating margins for the third quarter. It anticipated adjusted net income to be between $96 million and $101 million, or between $2.03 per share and $2.13 per share for the quarter under review. Our model suggests that sales are likely to jump 4.8% in the Wholesale unit and 2.7% in the Retail division in the quarter under review.
However, a tough operating landscape, including inflationary pressures on consumers and increased costs in areas like inventory, are likely to have acted as deterrents. This, coupled with any deleverage in SG&A expenses, are expected to have hurt G-III Apparel’s results in the to-be-reported fiscal quarter. We expect SG&A costs to reflect a year-over-year increase of 7.7% in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for G-III Apparel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
G-III Apparel Group, LTD. Price and Consensus
G-III Apparel Group, LTD. price-consensus-chart | G-III Apparel Group, LTD. Quote
G-III Apparel has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With The Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Casey's General Stores CASY currently has an Earnings ESP of +0.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a bottom-line decrease when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.52 suggests a decline of 4.1% from the year-ago quarter.
The consensus mark for revenues is pegged at $4.1 billion, indicating a rise of 3.8% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 17.5%, on average.
Five Below FIVE currently has an Earnings ESP of +5.22% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $726.9 million, calling for growth of 12.7% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 23 cents suggests a 20.7% decrease from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average.
Costco COST currently has an Earnings ESP of +5.23% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 suggests an increase of 11% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
