On January 9, 2013, Zacks Investment Research upgraded
G-III Apparel Group, Ltd.
) to a Zacks Rank #1 (Strong Buy). The company has amassed a
solid return of roughly 50% over the past year.
Why the Upgrade?
has been witnessing rising earnings estimates on the back of
robust third-quarter fiscal 2013 results and an upbeat guidance
for fiscal 2013. Moreover, this apparel manufacturer and
distributor outperformed the Zacks Consensus Estimates in 3 of
the last 5 quarters with an average beat of 15.6%.
G-III Apparel declared impressive third-quarter fiscal 2013
results on December 5, wherein earnings of $2.43 per share
surpassed the Zacks Consensus Estimate of $2.31 by 5.2% and
increased 12.5% from $2.16 earned in the prior-year quarter
buoyed by top-line growth. Net sales rose 6.6% year over year to
$543.5 million, but fell short of the Zacks Consensus Estimate of
The solid demand for its brands and assortments, new business
opportunities and increased penetration provide upside potential.
Management also expects to reinvigorate growth through
acquisitions, the latest in this league being the acquisition of
the leading luxury resort brand - Vilebrequin.
Based on its strong fundamentals, management now projects
fiscal 2013 earnings between $2.82 and $2.92 per share, up from
the previous forecast of $2.74 to $2.84.
The Zacks Consensus Estimate for fiscal 2013 rose 3.5% to
$2.93 per share over the last 60 days, and remains a penny above
the upper end of the company's guidance range. For fiscal 2014,
the Zacks Consensus Estimate advanced 3.1% over the same
timeframe to $3.32 per share.
Other Stocks to Consider
Other stocks in the textile-apparel sector that you could
Gildan Activewear Inc.
Joe's Jeans Inc.
Michael Kors Holdings Ltd.
), which hold a Zacks Rank #1 (Strong Buy).
G-III APPAREL (GIII): Free Stock Analysis
GILDAN ACTVWEAR (GIL): Free Stock Analysis
JOES JEANS INC (JOEZ): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
To read this article on Zacks.com click here.