G-III Apparel Group, Ltd . GIII is expected to report third-quarter fiscal 2019 results on Dec 4. The company outperformed the Zacks Consensus Estimate in all of the trailing four quarters. Let's see how things are shaping up prior to this announcement.
Which Way are Top & Bottom-Line Estimates Headed?
The Zacks Consensus Estimate for the quarter under review stands at $1.82 per share, up 9% from $1.62 a year ago. We note that the Zacks Consensus Estimate has remained stable in the past 30 days. Moreover, G-III Apparel's bottom-line history has been encouraging. If all goes well, this will be the company's seventh consecutive quarter of earnings beat.
The Zacks Consensus Estimate for revenues of $1,079 million indicates an increase of 5.3% from the year-ago quarter. If the company surpasses estimates, this will be its fourth straight quarter of top-line beat. We note that total revenues of this New York-based company increased 16.1% in the last reported quarter.
G-III Apparel Group, LTD. Price and EPS Surprise
Factors at Play
G-III Apparel's sturdy wholesale business coupled with increased same-store sales at Wilsons and DKNY led to top-line growth in the fiscal second quarter. The company's e-commerce direct to-consumer business also grew 20%. Encouraged by such upsides, management provided third-quarter guidance, depicting quite an improvement from the prior-year quarter. For the third quarter, management expects net sales of $1.08 billion compared with $1.02 billion a year ago. Also, management anticipates the bottom line to be $1.72-$1.82 per share compared with the year-ago adjusted earnings of $1.67.
Further, the company is optimistic about DKNY and Donna Karan brands' performance, as net sales in the categories doubled in the last reported quarter. The company is making progress to further develop the brands, both in the United States and Europe. The DKNY brand provides significant opportunities for international growth.
Additionally, G-III Apparel is focused on getting its own retail brands - Bass and Wilsons - back on the growth trajectory through merchandising efforts and store closures. Going forward, the company believes its Wilsons products to be well-positioned for the holiday season. However, G-III Apparel plans to execute a shift in product mix for the Bass stores to improve penetration of apparel. This merchandise shift, which is planned to be rolled out in the holiday season, is likely to boost sales year over year.
G-III Apparel is on track with the process of bolstering brands across channels, with new launches, improved marketing strategies and consumer reach. The company also plans to make efficient utilization of digital and social-media platforms.
What Does the Zacks Model Say?
Our proven model does not conclusively show that G-III Apparel is likely to beat estimates this quarter. A stock needs to have both - a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP - for this to happen. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
G-III Apparel has a Zacks Rank #3, but an Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Burlington Stores, Inc. BURL has an Earnings ESP of +2.83% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
DICK'S Sporting Goods, Inc. DKS has an Earnings ESP of +7.69% and a Zacks Rank #2.
Signet Jewelers Limited SIG has an Earnings ESP of +8.97% and a Zacks Rank #3.
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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.