Shares of the textile apparel retailer
G-III Apparel Group, Ltd
) have risen roughly 95% year to date and closed at $65.85 on Dec
16, 2013. The bullish run of the stock has continued in the year
and achieved enough momentum to continue traction in the next
year as well. As a result, Zacks Investment Research upgraded the
stock to a Zacks Rank #1 (Strong Buy) on Dec 6.
G-III Apparel has beaten the Zacks Consensus Estimate in five out
of the past seven quarters. The stock has beaten the Zacks
Expectation by an average of 54.3% while reporting in-line
earnings for two quarters.
Moreover, G-III Apparel has been witnessing rising earnings
estimates based on better-than-expected third-quarter fiscal 2014
results and an upbeat guidance for fiscal 2014.
G-III Apparel reported third-quarter results on Dec 5. Adjusted
quarterly earnings came in at $2.88 per share, which was 10.3%
higher than the Zacks Consensus Estimate of $2.61 and up 18.5%
year over year. Total revenue climbed 23.0% year over year to
$668.7 million and handily beat the Zacks Consensus Estimate of
Impressive results were driven by robust performance of specialty
retail operations and the wholesale business. Going forward, the
company expects acquisition of G.H. Bass & Co. to further
boost specialty retail operations.
Based on robust results, G-III Apparel raised its fiscal 2014
guidance. The company now anticipates sales to be about
$1.73 billion, as against the earlier projection of $1.61
billion. On the other hand, adjusted earnings per share are
expected to be $3.50 to $3.60 for fiscal 2014.
The Zacks Consensus Estimate for fiscal 2014 rose 8.5% to $3.59
per share in the last 30 days. For fiscal 2015, the Zacks
Consensus Estimate rose 5.5% to $4.24, over the same time frame.
Going ahead, we expect the company's formidable brand portfolio
and synergies from the acquisition of G.H. Bass & Co to drive
Some better-ranked retail stocks that look promising include
Michael Kors Holdings Ltd
Tiffany & Co
). While Hanesbrands carries a Zacks Rank #1 (Strong Buy),
Michael Kors and Tiffany sport a Zacks Rank #2 (Buy).
G-III APPAREL (GIII): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
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