Please ensure Javascript is enabled for purposes of website accessibility

G-III Apparel Group Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

G-III Apparel Group (Nasdaq: GIII) reported earnings on April 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), G-III Apparel Group beat expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
G-III Apparel Group recorded revenue of $375.3 million. The seven analysts polled by S&P Capital IQ expected revenue of $357.5 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $294.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The seven earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. Non-GAAP EPS of $0.41 for Q4 were 64% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.40 for Q4 were 60% higher than the prior-year quarter's $0.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.4%, 310 basis points better than the prior-year quarter. Operating margin was 4.3%, 130 basis points better than the prior-year quarter. Net margin was 2.2%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $260.5 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $3.30.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members out of 124 rating the stock outperform, and 11 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give G-III Apparel Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on G-III Apparel Group is outperform, with an average price target of $43.60.

Selling to fickle consumers is a tough business for G-III Apparel Group or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

G-III Apparel Group, Ltd. Stock Quote
G-III Apparel Group, Ltd.
GIII
$24.88 (4.54%) $1.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.