G-III Apparel Group, Ltd.
) reported first-quarter fiscal 2015 earnings of 6 cents per share,
significantly better than the Zacks Consensus Estimate of a loss of
16 cents per share. Year over year, earnings grew 20%, driving up
shares over 8% on the index yesterday.
The company's reported net sales of $366.2 million, which increased
34.3% year over year and was way ahead of the Zacks Consensus
Estimate of $346.0 million. Sales continue to get a boost from the
acquisition of G.H. Bass & Co. Also, G-III Apparel's wholesale
business remained robust while retail performed comparatively well.
brand contributed significantly to sales.
Gross profit for the quarter escalated 40.8% to $130.2 million with
the gross margin expanded 160 basis points (bps) to 35.5%. However,
operating profit fell 1.9% to $3,509.0 million.
Selling, general and administrative expenses came in $122.4
million, up 42.6% year over year. Rise was mainly due to higher
personnel, facility and advertising expenses related with G.H. Bass
G-III Apparel ended the year with a cash balance of $23.6 million
and total assets worth $803.1 million. As per management,
inventories increased 33.3% year over year to $342.6 million in
consistence with the projected sales growth. The company had
long-term debt of $20.5 million and stockholders' equity of
approximately $526.5 million.
Capital expenditures came in at $10 million for the quarter.
Outlook and Conclusion
Going forward, this Zacks Rank #3 (Hold) company intends to
continue with its organized method of diversification and growth
along with maintaining cost discipline. Management believes that
its constant endeavors to exploit growth opportunities and its
strategic expansion program, both internal and through
acquisitions, are likely to drive results and enhance stockholder
This optimistic outlook led management to raise its guidance for
fiscal 2015. Net sales for the year are expected to be around
$2.06 billion, as against $2.05 billion projected earlier. Earnings
per share will be in the band of $4.05-$4.20 compared with
$3.95-$4.10 projected earlier. The Zacks Consensus Estimate for
fiscal 2015 earnings is pegged at $4.12. Also, the company
projected EBITDA to grow 16.0%-19.0% and range from $170.2 - $175.5
million in fiscal 2015.
For the second quarter of fiscal 2015, management foresees net
earnings of 13-17 cents per share, compared with earnings of 17
cents a share in second-quarter of fiscal 2014. Net sales for the
coming quarter are expected to be roughly $392.0 million, compared
with $304.2 reported year over year.
Other Stocks to Consider
Other stocks in the retail sector that warrant a look include
Michael Kors Holdings Limited
Columbia Sportswear Company
). All of these carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
COLUMBIA SPORTS (COLM): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
G-III APPAREL (GIII): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis Report
To read this article on Zacks.com click here.