G-III Apparel Group, Ltd. (GIII – Free Report) has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.
GIII ended Tuesday’s trading session at $32.62, above its 50 and 200-day SMAs of $31.65 and $28.91, 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.
GIII Trades Above 50 & 200-Day Moving Averages
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Shares of this distinguished global fashion entity are 9.8% below its 52-week high of $36.18 reached on Dec. 13, 2024, making investors contemplate their next moves. In the past six months, GIII stock has gained 23.3%, outperforming the Zacks Textile – Apparel industry’s 20.6% 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 14.3% and 6.4%, respectively, at the same time.
GIII Stock Past Six-Month Performance
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G-III Apparel’s Strong Brand Portfolio
GIII’s strong performance in fiscal 2025 underscores its focus on owned brand growth. The company’s owned brands — DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin — collectively achieved more than 30% year-over-year growth in the third quarter of fiscal 2025. This impressive performance highlights the increasing significance of these brands within G-III Apparel’s business portfolio, driving sales, gross margin and licensing income.
DKNY saw more than 30% year-over-year sales growth in the quarter, driven by strong North American wholesale demand and expanded distribution with more than 700 new points of sale for the fall season. Similarly, Karl Lagerfeld experienced above 30% growth in North America and showed increasing traction internationally. A notable development was in the men’s segment of Karl Lagerfeld, which is projected to account for more than 20% of the brand’s international sales in fiscal 2025, up from 17% the prior year.
Donna Karan’s relaunch exceeded expectations, achieving double-digit retail sales growth and garnering some of the highest Average Unit Retail and sell-through rates within G-III Apparel’s portfolio. The brand expanded its footprint from 900 doors in spring 2024 to 1,200 in fall 2024, with plans to reach 1,600 doors by spring 2025. The company foresees a long-term annual sales potential exceeding $1 billion for Donna Karan.
GIII Drives Global Expansion & Retail Transformation
International growth is a critical focus area for G-III Apparel as it continues to strengthen its platform in Europe and capitalize on its partnership with AWWG. This collaboration, still in its infancy, is designed to unlock synergies and strengthen global capabilities. Key owned brands like DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin are making significant strides in overseas markets, supported by robust marketing and distribution efforts.
The Donna Karan relaunch has exceeded expectations globally, bolstering the potential for wider geographic reach. Similarly, DKNY has been gaining traction in international markets through expanded retail partnerships and targeted marketing campaigns, such as the global launch of its DKNY 24/7 Fragrance.
G-III Apparel’s retail segment is showing signs of transformation under new leadership. In this segment, net sales totaled $42.3 million for the quarter compared with $32.7 million in the third quarter of the prior fiscal year. The increase was driven by strong double-digit comparable sales growth despite the closure of seven stores in the quarter.
The segment is on track to break even in fiscal 2025 and is expected to turn profitable in fiscal 2026 for the first time in over a decade. Improved retail execution allows G-III Apparel to showcase the full lifestyle of its brands and collect valuable customer insights, strengthening its omni-channel capabilities.
G-III Apparel’s Strong Outlook for Fiscal 2025
The company projects net sales of $3.15 billion for fiscal 2025, suggesting 2% year-over-year growth, driven by the success of its owned brands and strategic initiatives. Sales from the go-forward portfolio are expected to account for 70% of the total net sales in fiscal 2025.
The company expects adjusted net income between $186 million and $191 million compared with the previously stated $180-$185 million. Adjusted earnings per share are expected between $4.10 and $4.20 compared with the earlier mentioned $3.95-$4.04. In fiscal 2024, the adjusted net income was $189.8 million and adjusted earnings were $4.04 per share.
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 30 days, analysts have increased their estimates for the current fiscal year, resulting in an upward revision of 15 cents to $4.16.
The consensus estimate for earnings for the next fiscal year has also advanced 10 cents to $4.21 per share. The Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.15 billion and $3.25 billion, respectively, indicating year-over-year growth of 1.7% and 3.2%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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Final Thoughts on GIII Stock
G-III Apparel stands out as a compelling opportunity due to its robust brand performance, strong global expansion strategy and ongoing retail transformation. With owned brands like DKNY and Donna Karan driving growth and profitability, coupled with international initiatives and improving retail execution, the company is well-positioned for long-term success. Positive investor sentiment, reflected in technical strength and upward earnings revisions, underscores confidence in G-III Apparel’s financial health and growth prospects. The company currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks are The Gap, Inc. (GAP – Free Report) , Abercrombie & Fitch Co. (ANF – Free Report) and Steven Madden, Ltd. (SHOO – Free Report) .
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the fiscal 2024 reported figures. GAP has a trailing four-quarter average earnings surprise of 101.2%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69.3% and 15%, respectively, from the fiscal 2024 actuals. ANF has a trailing four-quarter average earnings surprise of 14.8%.
Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.
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