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Here's How G-III Apparel (GIII) is Poised Before Q2 Earnings

·5 min read

G-III Apparel Group, Ltd. GIII is likely to report top and bottom-line growth from the respective year-ago fiscal quarter’s reported figures when it releases second-quarter fiscal 2023 results on Sep 7, before market open. The consensus mark for quarterly revenues is pegged at $594 million, indicating an increase of 22.9% from the year-ago fiscal quarter’s tally.

The Zacks Consensus Estimate for earnings in the fiscal second quarter currently stands at 49 cents, which implies growth of 25.6% from the year-ago fiscal period’s reported figure. The consensus estimate has dipped a penny in the past 30 days.

A glimpse of G-III Apparel’s performance in the trailing four quarters shows that it has an earnings surprise of 97.5%, on average.

Key Factors to Note

G-III Apparel’s quarterly performance is most likely to have been driven by solid gains from its digital business and brand strength. Management is focused on enhancing digital growth via investments in internal talent, e-commerce sites and improved logistics capabilities. GIII is quite optimistic about its five global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. GIII is also benefiting from assortments and products resonating well with consumer demand. Additionally, GIII’s strategic licensing agreements and international business remain positives.

All the aforesaid tailwinds are expected to have boosted G-III Apparel’s performance in the to-be-reported fiscal quarter. On its last earnings call, management had projected net sales of $600 million for the fiscal second quarter, indicating growth from $483.1 million recorded in the year-earlier fiscal quarter. GIII envisioned adjusted earnings per share of 42-52 cents for the fiscal quarter under review.

On the flip side, supply-chain headwinds, higher shipping costs and delays in receiving goods might have been headwinds.

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 you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although G-III Apparel carries a Zacks Rank #3 at present, its Earnings ESP of 0.00%in the combination makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

Casey's General Stores CASY currently has an Earnings ESP of +11.33% and a Zacks Rank #3. CASY is expected to register a bottom-line increase from the year-ago fiscal quarter’s reading when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago fiscal quarter’s tally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Casey's General’s top line is anticipated to have risen from the prior-year fiscal quarter’s actuals. The consensus mark for CASY’s revenues is pegged at $4.59 billion, indicating an increase of 44.2% from the figure reported in the year-ago fiscal quarter. CASY has a trailing four-quarter earnings surprise of 5.8%, on average. 

Dave & Buster's Entertainment PLAY currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. PLAY is likely to register a decline in the bottom line from the year-earlier fiscal quarter’s actuals when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago fiscal quarter’s reported number.

Dave & Buster's Entertainment’s top line is expected to have increased from the prior-year fiscal quarter’s actuals. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year fiscal quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.

Campbell Soup Company CPB currently has an Earnings ESP of +0.05% and a Zacks Rank #3. CPB is expected to register a decrease in the bottom line from the prior-year fiscal quarter’s actuals when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests a dip of 1.1% from the year-ago fiscal quarter’s reported figure.  

Campbell Soup’s top line is anticipated to have increased from the prior-year fiscal quarter’s actuals. The consensus mark for CPB’s revenues is pegged at $2.34 billion, indicating an increase of 4.6% from the figure reported in the year-ago fiscal quarter. CPB has a trailing four-quarter earnings surprise of 6.5%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Campbell Soup Company (CPB) : Free Stock Analysis Report
 
GIII Apparel Group, LTD. (GIII) : Free Stock Analysis Report
 
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
 
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
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