Bullish Run of G-III Apparel - Analyst Blog

Shares of the textile apparel retailer G-III Apparel Group, Ltd . ( GIII ) 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 $621.0 million.

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 sales.

Some better-ranked retail stocks that look promising include Hanesbrands Inc. ( HBI ), Michael Kors Holdings Ltd ( KORS ) and Tiffany & Co . ( TIF ). 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 Report

HANESBRANDS INC (HBI): Free Stock Analysis Report

MICHAEL KORS (KORS): Free Stock Analysis Report

TIFFANY & CO (TIF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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