G-III Apparel Group Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
 For the quarter ended Oct. 31 (Q3), G-III Apparel Group missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.


Margins expanded across the board.

Revenue details
 G-III Apparel Group logged revenue of $543.5 million. The six analysts polled by S&P Capital IQ expected sales of $571.1 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $510.0 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 $2.43. The seven earnings estimates compiled by S&P Capital IQ anticipated $2.34 per share. GAAP EPS of $2.37 for Q3 were 9.7% higher than the prior-year quarter's $2.16 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 35.0%, 320 basis points better than the prior-year quarter. Operating margin was 14.9%, 50 basis points better than the prior-year quarter. Net margin was 8.9%, 40 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $352.1 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $2.87.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members out of 125 rating the stock outperform, and 12 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $43.00.

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The article G-III Apparel Group Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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