On Dec 6, Zacks Investment Research upgraded
G-III Apparel Group, Ltd.
) to a Zacks Rank #1 (Strong Buy). Shares of this textile-apparel
retailer rose over twofold year to date.
Why the Upgrade?
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. Moreover, the company has
delivered positive earnings surprises in 3 of the last 4 quarters
with an average beat of 96.6%. The long-term expected earnings
growth rate for this stock is 16.5%.
G-III Apparel reported third-quarter results on Dec 5. Adjusted
quarterly earnings came in at $2.88, which were 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 $621.0
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. Moreover, gross profit for the
quarter was $227.3 million, up 19.5% year over year and operating
income was $98.7 million, up 21.7% from the prior-year quarter.
Based on robust results and expected synergies from the
acquisition of G.H. Bass & Co, G-III Apparel raised its
full-year 2014 guidance. The company now anticipates sales
to be about $1.73 billion, as against the earlier projection of
Further, net income is expected to be $72-$74 million or
$3.47-$3.57 per share compared to the prior range of $68.6-$70.6
million or $3.30-$3.40 per share. On the other hand, adjusted
earnings per share are expected to be $3.50 to $3.60 for fiscal
The Zacks Consensus Estimate for fiscal 2014 increased 8.5% to
$3.59 per share over the last 7 days, while for fiscal 2015, it
jumped by 5.5% to $4.24 per share over the same time frame.
Other Stocks to Consider
Some better-ranked retail stocks that look promising include
Michael Kors Holdings Limited
Columbia Sportswear Company
). While Hanesbrands has a Zacks Rank #1 (Strong Buy), Michael
Kors and Columbia Sportswear carry a Zacks Rank #2 (Buy).
COLUMBIA SPORTS (COLM): Free Stock Analysis
G-III APPAREL (GIII): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
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