G-III Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of sportswear specialist G-III Apparel Group (NAS: GIII) sank 17% on Thursday after its second-quarter earnings and full-year forecast missed Wall Street expectations.

So what: This marks the second straight quarter in which G-III has whiffed on its previous guidance, so investors are naturally growing skeptical over management's ability to meet targets. The company has been forced to offer customers significant margin-pressuring discounts in recent months, suggesting that the market remains a lot softer than many investors think.

Now what: Don't expect things to turn around anytime soon. G-III now sees full-year earnings of just $3.05 to $3.15 per share, which is well below the average analyst estimate of $3.21 per share. Of course, with the stock now down more than 45% since the end of April and trading at a substantial P/E discount to rivals Columbia Sportswear (NAS: COLM) and Nike (NYS: NKE) , G-III seems like an intriguing bargain for long-term Fools.

Interested in more info onG-III?Add it to your watchlist.

At the time this article was published 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 Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.