G-III Apparel Group (GIII) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of G-III Apparel Group (NASDAQ:GIII) from a hold rating to a sell rating in a research note issued to investors on Thursday.

According to Zacks, “Shares of G-III Apparel have decreased and underperformed the industry in the past three months. In fact, third-quarter fiscal 2019 results marked the company’s first top-line miss in a long time. The company has been grappling with sluggishness in the retail category, thanks to weakness in underlying brands and store closures. During the third quarter, retail segment net sales fell 7% due to decline across Wilsons and G.H. Bass stores. Moreover, stiff competition and foreign exchange fluctuations remain woes. Nevertheless, the company’s bottom line beat the estimate and improved year over year in the third quarter. Performance in the said period gained from a robust wholesale business as well as strength in DKNY stores. Further, management is impressed with growth witnessed at DKNY and Donna Karan brands. It has been undertaking efforts to expend these banners globally, mainly through augmenting licensing capabilities.”

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Several other equities research analysts have also issued reports on GIII. Buckingham Research dropped their target price on shares of G-III Apparel Group from $57.00 to $50.00 and set a buy rating for the company in a research report on Wednesday, October 17th. B. Riley upgraded shares of G-III Apparel Group from a neutral rating to a buy rating and set a $47.00 price objective for the company in a report on Thursday, October 18th. Cowen set a $45.00 price objective on shares of G-III Apparel Group and gave the stock a buy rating in a report on Thursday, October 18th. BidaskClub lowered shares of G-III Apparel Group from a strong-buy rating to a buy rating in a report on Friday, October 19th. Finally, Piper Jaffray Companies set a $50.00 price objective on shares of G-III Apparel Group and gave the stock a buy rating in a report on Thursday, December 6th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and ten have assigned a buy rating to the company. The company currently has an average rating of Buy and a consensus price target of $45.91.

G-III Apparel Group stock traded up $0.25 during mid-day trading on Thursday, hitting $35.39. 15,092 shares of the company traded hands, compared to its average volume of 419,996. G-III Apparel Group has a one year low of $25.43 and a one year high of $51.20. The firm has a market cap of $1.71 billion, a PE ratio of 22.12, a PEG ratio of 0.74 and a beta of 0.94. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.54 and a quick ratio of 1.55.

G-III Apparel Group (NASDAQ:GIII) last announced its earnings results on Thursday, December 6th. The textile maker reported $1.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.07. G-III Apparel Group had a net margin of 3.75% and a return on equity of 11.60%. The business had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.08 billion. During the same period in the previous year, the business posted $1.67 earnings per share. G-III Apparel Group’s revenue for the quarter was up 4.7% on a year-over-year basis. As a group, research analysts anticipate that G-III Apparel Group will post 2.75 earnings per share for the current year.

Several institutional investors and hedge funds have recently made changes to their positions in GIII. Northern Trust Corp lifted its holdings in shares of G-III Apparel Group by 9.6% in the 2nd quarter. Northern Trust Corp now owns 627,475 shares of the textile maker’s stock worth $27,860,000 after acquiring an additional 54,857 shares during the last quarter. United Services Automobile Association increased its stake in shares of G-III Apparel Group by 790.0% in the second quarter. United Services Automobile Association now owns 57,069 shares of the textile maker’s stock worth $2,534,000 after buying an additional 50,657 shares during the period. Bank of Montreal Can increased its stake in shares of G-III Apparel Group by 10.3% in the third quarter. Bank of Montreal Can now owns 45,058 shares of the textile maker’s stock worth $2,171,000 after buying an additional 4,212 shares during the period. Scout Investments Inc. increased its stake in shares of G-III Apparel Group by 2.4% in the third quarter. Scout Investments Inc. now owns 85,437 shares of the textile maker’s stock worth $4,117,000 after buying an additional 1,982 shares during the period. Finally, First Hawaiian Bank purchased a new position in shares of G-III Apparel Group in the third quarter worth $299,000.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel in the United States and internationally. The company operates in two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage.

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