Here's How G-III Apparel (GIII) is Poised Ahead of Q2 Earnings
G-III Apparel Group, Ltd. GIII is likely to report top and bottom-line declines from the respective year-ago quarter’s reported figures in second-quarter fiscal 2024 results on Sep 7, before market open. The Zacks Consensus Estimate for quarterly revenues is pegged at $595 million, indicating a 1.8% drop from the year-ago fiscal quarter’s tally.
The consensus mark for earnings in the fiscal second quarter currently stands at 2 cents per share, which shows a sharp decline from 39 cents a share earned in 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 47.4%.
Key Factors to Note
G-III Apparel’s quarterly performance is quite likely to have been hurt by a tough operating landscape, including inflationary pressures on consumers and increased costs in areas like warehousing and inventory. This, coupled with any deleverage in SG&A expenses, are likely to have hurt G-III Apparel’s earnings results in the to-be-reported fiscal quarter. The consensus estimate for SG&A costs is pegged at $204.8 million, reflecting a year-over-year increase of 7.2%.
On its last earnings call, management had projected net sales of nearly $595 million for the fiscal second quarter and a net loss in the band of $(5.0) million and break even or between $(0.10) per share and $0.00 per share. The company had envisioned an adjusted net loss of $3 million and net income of $2 million, or between a loss of 6 cents per share and earnings of 4 cents per share for the fiscal second quarter.
On the flip side, we note that the company has been focused on 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 five global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. These tailwinds are likely to have provided some cushion to the quarterly performance.
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 EPS Surprise
G-III Apparel Group, LTD. price-eps-surprise | 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 some companies, which according to our model, have the right combination of elements to beat on earnings:
Skechers SKX currently has an Earnings ESP of +0.41% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a bottom-line increase when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 77 cents suggests a rise of 40% from the year-ago quarter.
Skechers’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $2.01 billion, which indicates a rise of 6.8% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 39.1%, on average.
American Eagle Outfitters AEO currently has an Earnings ESP of +8.52% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests a surge of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores CASY currently has an Earnings ESP of +1.29% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.36 suggests a decline of 17.9% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
