Earnings Review and Free Research Report: G-III Apparel Reported Better Than Expected Results

LONDON, UK / ACCESSWIRE / September 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on G-III Apparel Group, Ltd (NASDAQ: GIII) (“G-III Apparel”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GIII, following the Company’s announcement of its financial results on September 06, 2017, for the second quarter of the fiscal year 2018. The Company’s net revenue increased 22% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For the three months ended July 31, 2017, G-III Apparel’s net revenue increased 22% to $538.01 million from $442.27 million in Q2 FY17. The net revenue surpassed analysts’ expectations of $522.24 million.

During Q2 FY18, G-III Apparel’s gross profit increased 30.0% to $202.89 million from $155.64 million in Q2 FY17. For the reported quarter, the Company’s gross margin decreased 60 basis points to 37.7% of revenue from 35.1% of revenue in Q2 FY17.

For the reported quarter, G-III Apparel’s selling, general, and administrative expenses (SG&A) increased 27.8% to $195.85 million from $153.17 million in Q2 FY17. The increase was due to $36 million of expenses associated with the newly acquired Donna Karan business and increase in personnel costs and facility costs. During Q2 FY18, the Company’s D&A expenses increased 40% to $10.74 million from $7.67 million in Q2 FY17.

During Q2 FY18, G-III Apparel’s operating loss was $3.69 million compared to an operating loss of $5.20 million in Q2 FY17.

During Q2 FY18, G-III Apparel’s net loss was $8.57 million compared to a net loss of $1.29 million in Q2 FY17. For the reported quarter, G-III Apparel’s diluted earnings per share (EPS) was negative $0.18 compared to a negative diluted EPS of $0.03 in Q2 FY17. During Q2 FY18, the Company’s adjusted diluted EPS was negative $0.15 compared to positive $0.01 in Q2 FY17. The adjusted diluted EPS surpassed analysts’ expectations of negative $0.26.

Balance Sheet

As on July 31, 2017, G-III Apparel’s cash increased 30.7% to $58.78 million from $44.95 million in Q2 FY17.

During Q2 FY18, the Company’s inventory decreased to $655.27 million from $570.0 million in Q2 FY17.

For the reported quarter, G-III Apparel’s working capital increased 14.9% to $689.04 million from $634.58 million in Q2 FY17.

For the reported quarter, the Company’s total assets increased 61.9% to $2.04 billion from $1.26 billion in Q2 FY17.

Outlook

For Q3 FY18, G-III Apparel expects net income to be in the range of $69.0 million – $73.0 million and adjusted net income to be in the band of $73.5 million – $78.5 million. The Company estimates diluted EPS to be in the range of $1.36 – $1.46 and adjusted diluted EPS to be in the band of $1.45 – $1.55 for Q3 FY18.

For FY18, G-III Apparel expects net income to be in the range of $56.0 million – $60.0 million and adjusted net income to be in the band of $64.5 million – $68.5 million. The Company expects adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) to be in the range of $180.0 million – $188.0 million; diluted EPS to be in the band of $1.11 – $1.21 and adjusted diluted EPS to be in the range of $1.28 – $1.38 for the fiscal year 2018.

Stock Performance

On Thursday, September 28, 2017, the stock closed the trading session at $29.25, marginally up 0.65% from its previous closing price of $29.06. A total volume of 907.83 thousand shares have exchanged hands, which was higher than the 3-month average volume of 779.12 thousand shares. G-III Apparel’s stock price soared 8.45% in the last one month, 16.12% in the past three months, and 34.85% in the previous six months. The stock is trading at a PE ratio of 41.97 and currently has a market cap of $1.42 billion.

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