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G-III Apparel (GIII) Queued Up for Q3 Earnings: What to Expect

G-III Apparel's (GIII) third-quarter fiscal 2022 results are likely to reflect gains from its brand strength and digital business.

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This story originally appeared on Zacks

G-III Apparel Group, Ltd. GIII is likely to report top and bottom-line growth when it releases third-quarter fiscal 2022 results on Dec 1, before market open. The Zacks Consensus Estimate for earnings in the fiscal third quarter currently stands at $1.79, which shows growth of about 37% from the year-ago period’s reported figure. The consensus estimate has increased 2.3% in the past 30 days.

A glimpse of G-III Apparel’s performance in the trailing four quarters shows that it has an earnings surprise of 180.5%, on average.

The consensus mark for quarterly revenues is pegged at $1,012 million, indicating an increase of 22.4% from the year-ago quarter’s tally.

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Key Factors to Note

G-III Apparel’s quarterly performance is most likely to have been driven by gains from digital business and brand strength. We note that digital sales of GIII’s products have been surging for a while now.

Management is focused on driving growth across the digital landscape via investments in internal talent, e-commerce sites and improved logistics capabilities.

Management is quite optimistic about G-III Apparel’s five global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. GIII is also benefiting from assortments and products resonating well with consumer demand. It is witnessing continued strength in casual categories. GIII’s strategic licensing agreements and international business remain added positives.

All the aforesaid tailwinds are expected to have boosted G-III Apparel’s performance in the to-be-reported quarter. On its last earnings call on Sep 2, management had projected net sales of roughly $1 billion for third-quarter fiscal 2022. It had envisioned earnings per share of $1.65-$1.75.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for G-III Apparel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. Price and EPS Surprise

GIII Apparel Group, LTD. price-eps-surprise | GIII Apparel Group, LTD. Quote

G-III Apparel has a Zacks Rank #3 and an Earnings ESP of +8.14%, currently.

More Stocks with Favorable Combination

Here are a few more companies you may want to consider as our model shows that these too have the right combination of elements to beat on earnings this season:

lululemon athletica LULU currently has an Earnings ESP of +1.44% and a Zacks Rank of 2. LULU is expected to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.43 billion, which suggests growth of 28.1% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for lululemon’s quarterly earnings has moved a penny up in the past 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago quarter’s reported number. LULU delivered an earnings beat of 25.2%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

PVH Corp. PVH currently has an Earnings ESP of +1.61% and a Zacks Rank #2. PVH is expected to register top- and bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of $2.07 per share suggests growth of 56.8% from the year-ago quarter’s reported figure.

The consensus mark for PVH Corp.’s quarterly revenues is pegged at $2.40 billion, indicating an increase of 13.4% from the figure reported in the year-ago quarter. PVH has a trailing four-quarter earnings surprise of 177.5%, on average.

Costco COST currently has an Earnings ESP of +1.00% and a Zacks Rank of 3. It is likely to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 2.8% north in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.6 billion, implying growth of 14.8% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters.



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