Clothing maker G-III Apparel (NASDAQ:GIII) recently released its earnings report, a move sufficient to drive the company up 5.8% in premarket trading. It's held onto those gains going into this morning's trading session as well, adding further momentum. G-III Apparel group subsidiaries, like DKNY and Donna Karan, helped the company offer up not only consensus-beating results for the first quarter of its fiscal 2022 year, but also an upbeat look at the full year. The current word from financial analysts, however, urges caution and has done so for some time now, with ratios of buyers and holders maintaining firm.
G-III Apparel Earnings Report Destroys Expectations
G-III Apparel turned in a magnificent earnings report, bringing in $0.53 per share earnings against a consensus expectation of just $0.15 per share. That also blows away the earnings posted from the first fiscal quarter of 2021, in which the company posted a loss of $0.82 per share.
Revenue, meanwhile, also knocked expectations for a loop. The company saw net sales for the first quarter come in at $519.9 million, which handily beat back the Zacks consensus that called for $460.6 million in revenue. It also represented a significant win over this time last year, in which the company posted a reported $405.1 million in sales.
This year's results were mainly traced to improvements in sportswear as well as wear-to-work lines of apparel, both of which were called on extensively as workers returned to offices at varying degrees. The company's chairman and CEO, Morris Goldfarb, pointed to G-III Apparel's diversity of wear as well as internal restructuring. The company has reportedly closed the last of its Wilsons Leather and G.H. Bass stores as well.
The company also issued full-year guidance that looked fairly upbeat. The company doesn't expect any significant return of government-mandated restrictions or even outright store closures like those seen this time last year. The forecast looks for net sales around $2.57 billion, which is a nice upward turn from the $2.06 billion seen last year. This is especially true given that last year's net sales included $91.8 million from Wilsons Leather and G.H. Bass stores. G-III Apparel also looks for net income to come in in the $2.60 to $2.70 per share range, for a total of between $125 million and $135 million.
What Are Financial Analysts Saying About GIII Stock?
Currently, financial analysts are urging caution for those interested in buying in on G-III Apparel stock, our latest research notes. However, the proportions of analyst advice, overall, is revealing an unusually stable ratio track. The company currently has a consensus rating of “hold”, and has held this rating for more than two years now.
A year ago, the company had four “buy” ratings, six “hold” ratings, and one “sell” rating to its credit. Six months ago, that changed slightly to three “buy”, six “hold” and one “sell” rating. Today, however, we stand at two “buy”, four “hold” and one “sell.” While the total number of analysts involved has declined, the two-to-one ratio of “hold” to “buy” has held.
GIII stock price targets, meanwhile, occupy a comparatively narrow range. Currently, the average share price target is $29.29, bookended by a high of $38 and a low of $17.
Recent movement is nonexistent. There hasn't been a change seen in the company's analyst outlook since March, though the movements from March were overwhelmingly positive. March 19 saw four different analysts—B. Riley, KeyCorp, Barclays and Piper Sandler—all raise their price targets on the company. KeyCorp and Piper Sandler bumped theirs up substantially—KeyCorp went from $30 to $38 and Piper Sandler went from $21 to $30—but B. Riley and Barclays offered more incremental increases. B. Riley went from $33 to $38, and Barclays was up from $24 to $27.
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