G-III Apparel Group
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.
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 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.
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.)
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.
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.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.