Stock on Focus: G-III Apparel Group, Ltd. (GIII)

Company Profile:

G-III Apparel Group, Ltd. designs, manufactures, and markets womens and mens apparel. It operates through three segments: Licensed Products, Non-Licensed Products, and Retail Operations. The companys products include outerwear, dresses, sportswear, swimwear, womens suits, and womens performance wear. It also markets footwear, luggage and womens handbags, small leather goods, and cold weather accessories. The company markets its apparel and other products under proprietary brands, such as the Andrew Marc, Marc New York, Vilebrequin, Bass, G.H. Bass, Black Rivet, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks, and G-III for Her. G-III Apparel Group, Ltd. also licenses its products under the Calvin Klein, ck Calvin Klein, Guess, Guess?, Kenneth Cole NY, Reaction Kenneth Cole, Cole Haan, Levi’s, Vince Camuto, Tommy Hilfiger, Jessica Simpson, Ivanka Trump, Jones New York, Ellen Tracy, Kensie, Dockers, and Mac & Jac brands, as well as have licenses with the National Football League, Major League Baseball, National Basketball Association, National Hockey League, As of January 31, 2015, it operated 185 Wilsons Leather stores, 156 G.H. Bass stores, and 5 Calvin Klein performance stores. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.

Recent News:

G-III Apparel Group reported fiscal 3Q16 net sales of $909.9 million, a rise of 12.0% when compared to its net sales of $812.3 million in fiscal 3Q15.

GIII’s net income and EPS (earnings per share) rose to $87.2 million and $1.87, respectively, in fiscal 3Q16, as compared to its net income and EPS of $80.6 million and $1.76, respectively, in fiscal 3Q15.

Higher sales and margins helped G-III Apparel Group, Ltd. GIII to continue with its positive earnings surprise streak for the seventh consecutive quarter. The company’s third-quarter fiscal 2016 adjusted earnings of $1.85 per share surpassed the Zacks Consensus Estimate of $1.78 and surged 20% from the prior-year quarter figure of $1.54.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

GIII’s strengths can be seen in its better growth, better profitability and strong efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 52.11. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate G-III Apparel Group, Ltd. (GIII) a Strong BUY.