G-III Apparel Group, Ltd. GIII has demonstrated strong upward momentum, trading above its 200 and 50-day simple moving averages (SMA). SMA is a key indicator of price stability and long-term bullish trends.
GIII ended Friday’s trading session at $30.60, above its 200 and 50-day SMA of $28.72 and $29.62, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, reflects positive market sentiment and investor’s confidence in GIII's financial health and growth prospects.
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Shares of this distinguished global fashion entity are 14.2% below its 52-week high of $35.68 reached on Dec. 15, 2023, making investors contemplate their next moves. In the past three months, GIII stock has gained 13.3%, outperforming the Zacks Textile - Apparel industry’s 9.5% growth.
The company’s focus on global expansion and brand building has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 6.6% and 6.1%, respectively, at the same time. As the market shifts and the holiday season nears, it's time to consider if buying, holding or selling GIII stock is the right move.
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GIII's Growth Strategy: Digital Innovation, Global Expansion
G-III has made notable progress in its digital and omnichannel strategies, particularly by enhancing e-commerce platforms for key brands like DKNY and Karl Lagerfeld Paris. These platforms now utilize advanced technologies, including improved loyalty programs and sophisticated CRM systems, designed to drive online sales and enhance customer engagement.
In addition to GIII’s digital initiatives, the company has broadened its global reach through strategic partnerships. A significant move was increasing its stake in AWWG, a prominent European fashion group, which is projected to generate more than $200 million in sales from the Iberian market within three to five years. This partnership has strengthened G-III’s distribution and market presence in Spain, Portugal and India. Furthermore, the company’s expansion into Latin America and the opening of stores in London and Hamburg have solidified its international footprint.
G-III is also working on expanding its licensing portfolio. A major collaboration with Converse is set to launch in the fall of 2025, positioning the company for growth in the active lifestyle market. New licensing agreements with brands like Champion and Nautica will complement G-III’s existing portfolio, extending its reach in the casualwear and lifestyle sectors.
Financially, G-III reported significant improvements in the second quarter of fiscal 2025, with a 90-basis-point year-over-year increase in gross margin to 42.8%. This was driven by higher sell-through rates and a focus on higher-margin-owned brands. Additionally, SG&A expenses decreased 4.3%, reflecting better cost management and operational efficiency.
G-III is well-positioned for continued growth, with fiscal 2025 net sales expected to be $3.2 billion, indicating a 3% year-over-year increase. Strong brand performance, strategic marketing and effective cost management underpin this positive outlook.
GIII's Estimates Show Upward Revisions
The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 60 days, analysts have increased their estimates for the current-fiscal year, resulting in an upward revision of 38 cents in the consensus estimate to $4.01 per share.
The consensus estimate for earnings for the next-fiscal year has also advanced 38 cents to $4.11 per share. The Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.20 billion and $3.30 billion, respectively, indicating year-over-year growth of 3.3% and 3.2%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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Attractive Valuation of GIII Stock
From a valuation perspective, G-III’s shares present an attractive opportunity, trading at a discount relative to the historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.49, which is below the five-year median of 7.66 and an industry average of 13.01, the stock offers compelling value for investors seeking exposure to the sector. The stock currently has a Value Score of A, further validating its appeal.
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How to Play GIII Stock?
Investors may consider buying G-III stock due to its robust upward momentum and strong technical indicators, signaling a bullish trend. The company’s commitment to enhancing its digital presence and expanding G-III’s global footprint through strategic partnerships reflects a proactive approach to growth. With ongoing advancements in e-commerce and significant new licensing agreements on the horizon, G-III is positioned to capitalize on emerging market opportunities.
The upward revisions in earnings estimates suggest positive sentiment of analyst, further enhancing investor confidence. Collectively, these factors indicate a promising outlook for G-III, making it an attractive investment choice in the fashion sector. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other top-ranked stocks are Abercrombie & Fitch Co. ANF, Gildan Activewear Inc. GIL and Crocs, Inc. CROX.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 63.4% and 13%, respectively, from the fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Gildan Activewear Inc. is a manufacturer and marketer of premium quality branded basic activewear. It carries a Zacks Rank #2 (Buy) at present.
The consensus estimate for Gildan Activewear’s 2024 earnings and sales indicates growth of 14% and 1.4%, respectively, from 2023’s reported levels. GIL has a trailing four-quarter average earnings surprise of 5.5%.
Crocs offers a wide variety of footwear products, including sandals, wedges, flips and slides that cater to people of all ages. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Crocs’ 2024 earnings and sales indicates growth of 7.3% and 4.4%, respectively, from 2023’s actuals. CROX has a trailing four-quarter average earnings surprise of 14.9%.
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