G-III Stock Gains in a Month: Why is GIII Getting Investor Attention?

Zacks Equity Research
6 min read

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Shares of G-III Apparel Group, Ltd. GIII have experienced a decent price increase over the past month. The stock has rallied 24.1% compared with the Zacks Textile - Apparel industry’s 1.8% growth. The company’s strategy of expanding its digital and omnichannel capabilities, growing its global footprint, securing valuable licensing partnerships and improving operational efficiency has positioned it for long-term success.

GIII's ability to adapt and innovate in challenging market conditions has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 9% and 2.5%, respectively, during the same period. Closing at $30.53 on Sept. 10, G-III Apparel’s stock is currently trading 14.4% below its 52-week high of $35.68 attained on Dec. 15, 2023.

 

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Technical indicators are supportive of G-III Apparel’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in its financial health and prospects.

GIII's Digital, Global & Operational Advancements Bode Well

G-III has made significant strides in digital and omnichannel growth, focusing on enhancing its e-commerce platforms for flagship brands like DKNY and Karl Lagerfeld Paris. These platforms are equipped with the latest technology, including updated loyalty programs and advanced CRM capabilities, which are crucial for driving online sales and customer engagement. 

The company has also been proactive in expanding its global footprint through strategic partnerships. A notable initiative is its increased stake in AWWG, a major European fashion player, which is expected to generate more than $200 million in sales from the Iberian market in the next three to five years. 

This partnership will enhance the distribution and market reach of G-III's brands in Spain, Portugal and India. GIII's expansion into Latin America and the opening of stores in key cities like London and Hamburg are set to strengthen its international market presence.

Licensing agreements have been another focus for G-III. The company has secured high-value partnerships, including a significant deal with Converse, set to launch in Fall 2025. This agreement will bolster GIII's position in the active lifestyle segment and provide opportunities for international expansion. New licenses with brands like Champion and Nautica complement G-III's existing portfolio and broaden its reach in lifestyle and casualwear markets.

The company has achieved notable improvements in the gross margin and efficiency. It reported a 90-basis-point year over year increase in the gross margin to 42.8%, driven by higher sell-through rates and a focus on higher-margin owned brands. SG&A expenses also declined 4.3%, reflecting improved cost management and operational efficiency.

G-III is well-positioned for continued growth. The company has reaffirmed its fiscal 2025 net sales guidance of $3.2 billion, indicating a 3% increase over the previous year. This positive outlook is supported by the strong performance of its brands, strategic marketing investments and effective cost management. Despite transitioning away from previous licenses with Calvin Klein and Tommy Hilfiger, G-III's go-forward brands are expected to drive 70% of net sales in fiscal 2025.

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