G-III Apparel Group Misses on Both Revenue and Earnings

G-III Apparel Group (NAS: GIII) reported earnings on March 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), G-III Apparel Group missed estimates on revenue and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
G-III Apparel Group reported revenue of $294.3 million. The five analysts polled by S&P Capital IQ expected sales of $305.8 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $270.2 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 $0.25. The four earnings estimates compiled by S&P Capital IQ anticipated $0.29 per share. GAAP EPS of $0.25 for Q4 were 60% lower than the prior-year quarter's $0.62 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 28.3%, 400 basis points worse than the prior-year quarter. Operating margin was 3.0%, 470 basis points worse than the prior-year quarter. Net margin was 1.7%, 290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $217.7 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $3.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 113 members out of 127 rating the stock outperform, and 14 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 $30.40.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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