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1. Company Snapshot

1.a. Company Description

G-III Apparel Group, Ltd.designs, sources, and markets women's and men's apparel in the United States and internationally.The company operates through 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.The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers.It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities.


The company offers its products to department, specialty, and mass merchant retail stores.As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores.The company also sells its products online.


G-III Apparel Group, Ltd.was founded in 1956 and is headquartered in New York, New York.

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1.b. Last Insights on GIII

The recent 3 months performance of G-III Apparel Group, Ltd. was negatively impacted by rising costs and soft 2026 guidance, which pressured profit expectations. The company's low P/E ratio signals value amid global growth and digital investment, but this is tempered by the challenges posed by rising costs. Additionally, the company's warning of tariff impact on profit and withdrawal of full-year outlook has contributed to the negative sentiment.

1.c. Company Highlights

2. G-III Apparel Group's Strong Q3 Earnings Driven by Owned Brands

G-III Apparel Group delivered a robust third-quarter performance, with non-GAAP earnings per diluted share coming in at $1.90, exceeding the midpoint of guidance by $0.37. Net sales were $989 million, in line with expectations, despite a decline in sales from Calvin Klein and Tommy Hilfiger license businesses due to expired licenses. Gross margin was 38.6%, down from 39.8% in the previous year's third quarter, primarily due to the impact of tariffs. The company's owned brands, including Donna Karan, Karl Lagerfeld, and DKNY, outperformed expectations, driving the strong profitability.

Publication Date: Dec -20

📋 Highlights
  • Strong Q3 Performance:: Net sales reached $989 million (in line with guidance), with non-GAAP EPS of $1.90, surpassing the guidance midpoint by $0.37.
  • Owned Brands Growth:: Donna Karan sales surged 40% in North America, while Karl Lagerfeld’s global campaign drove double-digit growth and full-price sales.
  • Balance Sheet Strength:: Ended with $174 million net cash, supporting strategic investments and new dividend of $0.10 per share quarterly.
  • 2026 Guidance Adjusted:: Full-year non-GAAP EPS raised to $7.40, with $2.98 billion net sales projected, despite $65 million tariff impact.
  • Margin & Strategic Focus:: Gross margin at 38.6% (vs. 39.8% prior year) due to tariffs, but expects normalization as higher-margin owned brands expand.

Owned Brands Drive Growth

The company's owned brands delivered impressive results, with Donna Karan seeing a 40% increase in sales this year. The brand's iconic DNA and aspirational luxury positioning captured strong consumer demand at higher price points. Karl Lagerfeld's global brand initiative also drove strong results, with a high-impact global rollout across key markets. The company's focus on executing strategic priorities, making disciplined brand investments, and positioning its portfolio to capture market share and long-term growth is expected to continue driving growth.

Valuation Metrics

Using the current valuation metrics, the stock has a P/E Ratio of 26.21, indicating that the market is pricing in a certain level of growth. The P/S Ratio is 0.43, suggesting that the stock is relatively undervalued. The ROE is 2.84%, which is relatively low, but the ROIC is 6.91%, indicating that the company is generating returns on its invested capital. With a net cash position of $174 million and a dividend yield of 0.33%, the company has a strong balance sheet and is returning value to shareholders.

Future Prospects

The company is working on executing several strategic initiatives, including possible acquisitions, new licenses, and distribution through other channels. The recent acquisition, BCBG, is showing promise, and the company is excited about the potential for Converse, which is a unique global opportunity. The company's focus on private label initiatives and its overseas organization is also expected to drive growth. With a strong balance sheet and a clear strategy, G-III Apparel Group is well-positioned for future growth.

3. NewsRoom

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Jan -25

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Analyzing G-III Apparel Group (NASDAQ:GIII) & Tefron (OTCMKTS:TFRFF)

Jan -18

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Contrasting G-III Apparel Group (NASDAQ:GIII) and Nitches (OTCMKTS:NICH)

Jan -15

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G-III Apparel Group, LTD. $GIII Shares Purchased by Cwm LLC

Jan -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.42%)

6. Segments

Wholesale

Expected Growth: 5.45%

G-III Apparel Group's wholesale segment growth of 5.45% is driven by increasing demand for licensed products, expansion of existing brand portfolios, and strategic partnerships. Additionally, the company's focus on digital marketing and e-commerce initiatives has contributed to the growth. Furthermore, the acquisition of new brands and licenses has also boosted wholesale revenue.

Retail

Expected Growth: 4.77%

G-III Apparel Group's Retail segment growth of 4.77% is driven by increasing demand for licensed products, successful brand acquisitions, and strategic expansion of e-commerce platforms. Additionally, the company's focus on omnichannel retailing, effective inventory management, and competitive pricing strategies have contributed to the segment's growth.

Elimination

Expected Growth: 5.4%

G-III Apparel Group's 5.4% growth is driven by strong brand portfolio, including licensed brands like Calvin Klein and Tommy Hilfiger, and its diversified distribution channels. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic acquisitions have contributed to its growth momentum.

7. Detailed Products

Licensed Products

G-III Apparel Group, Ltd. designs, manufactures, and distributes licensed products, including outerwear, dresses, sportswear, and women's suits, under various licensed brands such as Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld.

Non-Licensed Products

The company offers non-licensed products, including outerwear, dresses, sportswear, and women's suits, under its own proprietary brands such as G-III, Winlit, and Jessica Howard.

Women's Apparel

G-III Apparel Group, Ltd. designs, manufactures, and distributes women's apparel, including dresses, sportswear, and suits, under various licensed and proprietary brands.

Men's Apparel

The company offers men's apparel, including outerwear, sportswear, and suits, under licensed and proprietary brands.

Accessories

G-III Apparel Group, Ltd. designs, manufactures, and distributes accessories, including hats, scarves, belts, and bags, under various licensed and proprietary brands.

8. G-III Apparel Group, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

G-III Apparel Group, Ltd. operates in a competitive industry with many substitutes available, but the company's strong brand portfolio and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

G-III Apparel Group, Ltd. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network reduce the dependence on any single customer.

Bargaining Power Of Suppliers

G-III Apparel Group, Ltd. has a large number of suppliers, which reduces the bargaining power of individual suppliers. However, the company's dependence on a few key suppliers for raw materials and components may give them some bargaining power.

Threat Of New Entrants

The apparel industry has high barriers to entry, including significant capital requirements, complex supply chains, and established brand recognition. These barriers make it difficult for new entrants to compete with established players like G-III Apparel Group, Ltd.

Intensity Of Rivalry

The apparel industry is highly competitive, with many established players competing for market share. G-III Apparel Group, Ltd. faces intense competition from other apparel companies, which may lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.43%
Debt Cost 8.35%
Equity Weight 76.57%
Equity Cost 15.91%
WACC 14.14%
Leverage 30.60%

11. Quality Control: G-III Apparel Group, Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.89$

Current Price

31.89$

Potential

-0.00%

Expected Cash-Flows