G-III Apparel Group Ltd (GIII, Financial) has experienced a notable uptick in its stock performance recently. With a market capitalization of $1.37 billion, the company's shares are currently trading at $30.07. Over the past week, the stock has seen a 4.52% gain, and over the past three months, it has surged by an impressive 25.40%. When compared to the GF Value of $29.87, G-III Apparel Group is considered fairly valued, a shift from being significantly undervalued three months ago when the GF Value was at $28.67. This change in valuation reflects a positive market sentiment towards the company's future prospects.
Introduction to G-III Apparel Group Ltd
G-III Apparel Group Ltd operates within the competitive Manufacturing - Apparel & Accessories industry. The company is known for its diverse range of apparel, footwear, and accessories, which it markets under a mix of owned, licensed, and private label brands. G-III boasts a strong portfolio of global power brands including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. Its business is divided into two main segments: Wholesale Operations and Retail Operations, with the former being the primary revenue driver. The company's strategic brand partnerships and extensive distribution network have positioned it as a key player in the apparel sector.
Assessing G-III Apparel Group's Profitability
The company's Profitability Rank stands at a solid 7/10, indicating a strong ability to generate profits relative to its peers. G-III's Operating Margin is currently at 9.23%, outperforming 75.14% of 1,042 companies in the industry. However, the company's Return on Equity (ROE) is at -7.82%, and Return on Assets (ROA) is at -4.07%, which are areas of concern. On a brighter note, the Return on Invested Capital (ROIC) is an impressive 14.77%, indicating efficient capital utilization. Over the past decade, G-III has maintained profitability for 9 years, showcasing its resilience and operational efficiency.
Growth Trajectory of G-III Apparel Group
When it comes to growth, G-III Apparel Group holds a Growth Rank of 4/10. The company's 3-Year Revenue Growth Rate per Share is 1.60%, and its 5-Year Revenue Growth Rate per Share is 0.60%, indicating a modest growth pattern. The estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 2.16%. Furthermore, the 3-Year EPS without NRI Growth Rate stands at 10.20%, and the 5-Year EPS without NRI Growth Rate is at 16.70%, suggesting that earnings growth has been stronger than revenue growth, which could be a result of improved operational efficiencies or cost management strategies.
Notable Shareholders in G-III Apparel Group
Among the notable shareholders of G-III Apparel Group, HOTCHKIS & WILEY leads with 355,660 shares, representing a 0.78% stake in the company. Following closely is Francisco Garcia Parames (Trades, Portfolio), holding 349,422 shares, which translates to a 0.77% share percentage. Renowned investor Jim Simons (Trades, Portfolio) also has a vested interest in G-III, with 74,303 shares, accounting for a 0.16% share percentage. The presence of these prominent investors underscores the confidence in the company's value proposition and future growth potential.
Competitive Landscape
G-III Apparel Group operates in a highly competitive industry, with close rivals such as Hanesbrands Inc (HBI, Financial) with a market cap of $1.37 billion, FIGS Inc (FIGS, Financial) valued at $1.19 billion, and Oxford Industries Inc (OXM, Financial) with a market cap of $1.48 billion. These companies are closely matched in terms of market capitalization, which suggests that G-III must continue to innovate and effectively manage its operations to maintain its competitive edge.
Conclusion
In summary, G-III Apparel Group Ltd's recent stock performance has been robust, with a significant 25.40% gain over the past three months, reflecting a market consensus that the company is fairly valued. The company's profitability remains strong, with an impressive operating margin and ROIC. However, there are areas for improvement, particularly in ROE and ROA. Growth rates in revenue and EPS suggest cautious optimism, with a focus on earnings growth outpacing revenue increases. The competitive landscape requires G-III to stay agile and innovative. Overall, G-III Apparel Group presents a compelling case for investors looking for a stable company with potential for continued growth in the apparel and accessories sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
