G-III Apparel Group Beats on the Top Line

G-III Apparel Group (NAS: GIII) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), G-III Apparel Group beat expectations on revenues and met expectations on earnings per share.

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

Gross margins dropped, operating margins were steady, net margins shrank.

Revenue details
G-III Apparel Group notched revenue of $229.4 million. The five analysts polled by S&P Capital IQ predicted revenue of $212.9 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $196.9 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 -$0.04. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.04 per share. GAAP EPS were -$0.04 for Q1 versus -$0.03 per share for the prior-year quarter.


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 29.9%, 30 basis points worse than the prior-year quarter. Operating margin was 0.0%, about the same as the prior-year quarter. Net margin was -0.4%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $251.5 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $2.70.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 116 members out of 129 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give G-III Apparel Group a green thumbs-up, and five 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 $33.20.

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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. 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.

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