BTIG Research Reiterates Buy Rating for G-III Apparel Group (NASDAQ:GIII)

Key Points

• BTIG Research reiterated a “Buy” rating on G-III Apparel Group with a $40 price target, implying 40.5% upside from the stock’s prior close. However, the broader analyst consensus remains “Hold,” with an average target of $31.80.
• G-III exceeded quarterly EPS expectations and improved gross margin, while institutional ownership rose to 92.13%. The company also completed its acquisition of Marc Jacobs, which management views as a significant long-term growth opportunity.
• Near-term results remain pressured: quarterly revenue fell 9.7% year over year, and third-quarter EPS and revenue guidance came in below consensus estimates. Marc Jacobs is expected to be slightly dilutive in fiscal 2027 before becoming accretive later.

G-III Apparel Group (NASDAQ:GIII - Get Free Report)'s stock had its "buy" rating reissued by research analysts at BTIG Research in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $40.00 price objective on the textile maker's stock. BTIG Research's price target would suggest a potential upside of 40.50% from the company's previous close.

A number of other analysts also recently issued reports on GIII. Telsey Advisory Group dropped their price objective on shares of G-III Apparel Group from $38.00 to $32.00 and set a "market perform" rating for the company in a report on Thursday. Wall Street Zen lowered G-III Apparel Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 15th. Weiss Ratings upgraded G-III Apparel Group from a "hold (c)" rating to a "buy (b-)" rating in a report on Tuesday, June 9th. Zacks Research cut G-III Apparel Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Finally, KeyCorp restated an "overweight" rating and issued a $40.00 target price (up from $35.00) on shares of G-III Apparel Group in a research report on Monday, June 8th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, G-III Apparel Group has a consensus rating of "Hold" and an average price target of $31.80.

G-III Apparel Group Price Performance

NASDAQ GIII opened at $28.47 on Wednesday. G-III Apparel Group has a 1 year low of $24.61 and a 1 year high of $37.54. The stock has a market capitalization of $1.20 billion, a PE ratio of 10.06 and a beta of 1.27. The company's 50 day simple moving average is $34.38 and its two-hundred day simple moving average is $31.88.

G-III Apparel Group (NASDAQ:GIII - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The textile maker reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.03. G-III Apparel Group had a net margin of 4.34% and a return on equity of 5.59%. The firm had revenue of $554.09 million for the quarter, compared to analysts' expectations of $570.37 million. During the same quarter in the prior year, the firm posted $0.25 earnings per share. The business's quarterly revenue was down 9.7% on a year-over-year basis. G-III Apparel Group has set its Q3 2027 guidance at 1.350-1.450 EPS and its FY 2027 guidance at 2.200-2.300 EPS. On average, research analysts anticipate that G-III Apparel Group will post 2.24 EPS for the current year.

Hedge Funds Weigh In On G-III Apparel Group

Several institutional investors and hedge funds have recently bought and sold shares of GIII. BlackRock Inc. bought a new stake in G-III Apparel Group in the second quarter valued at approximately $232,832,000. California State Teachers Retirement System increased its position in shares of G-III Apparel Group by 3,825.1% in the second quarter. California State Teachers Retirement System now owns 1,408,404 shares of the textile maker's stock valued at $47,477,000 after acquiring an additional 1,372,522 shares during the period. Norges Bank bought a new position in shares of G-III Apparel Group during the fourth quarter valued at about $36,200,000. Bank of America Corp DE bought a new position in shares of G-III Apparel Group during the second quarter valued at about $14,963,000. Finally, Balyasny Asset Management L.P. bought a new position in G-III Apparel Group during the 2nd quarter valued at approximately $7,546,000. 92.13% of the stock is currently owned by institutional investors.

Key G-III Apparel Group News

Here are the key news stories impacting G-III Apparel Group this week:

• Positive Sentiment: G-III reported second-quarter fiscal 2027 GAAP EPS of $0.46, up from $0.25 a year earlier and above the approximately $0.23 analyst consensus. Non-GAAP EPS was $0.26, also slightly ahead of estimates. G-III fiscal 2027 second-quarter results
• Positive Sentiment: Gross margin expanded 440 basis points to 45.2%, helped by pricing actions and a greater mix of higher-margin owned brands. Management said its go-forward portfolio grew at a high-single-digit rate.
• Positive Sentiment: G-III and WHP Global completed the acquisition of Marc Jacobs from LVMH. The company views the brand as a major long-term growth opportunity and is targeting approximately $1 billion in annual revenue from the business. Marc Jacobs acquisition completion
• Neutral Sentiment: Fiscal 2027 non-GAAP EPS guidance was set at $2.20–$2.30, broadly in line with the $2.23 consensus. However, the outlook excludes Marc Jacobs, which management expects to be slightly dilutive during fiscal 2027 before becoming accretive later.
• Positive Sentiment: G-III ended the quarter with $529.2 million in cash, up from $301.8 million, while inventory declined 13% year over year. The company also returned $12.2 million through share repurchases and dividends.
• Negative Sentiment: Second-quarter sales fell 10% year over year to $554.1 million, missing the $570.4 million consensus. Fiscal 2027 sales are expected to be approximately $2.71 billion, down from $2.96 billion, partly reflecting the loss of about $460 million in Calvin Klein and Tommy Hilfiger product sales.
• Negative Sentiment: Third-quarter EPS guidance of $1.35–$1.45 is well below the $1.73 consensus, while projected revenue of roughly $870 million trails the $897.8 million estimate. The company also expects third-quarter sales and earnings to decline from the prior year, making the near-term outlook the primary pressure on GIII.

G-III Apparel Group Company Profile

G-III Apparel Group, Ltd. is a global fashion company engaged in the design, sourcing, marketing and distribution of women's and men's apparel, outerwear, footwear, handbags and fashion accessories. Founded in 1956 and headquartered in New York City, the company has grown from an importer of ladies' apparel into a diversified apparel business with a portfolio of owned and licensed brands.

The company's product offerings span a broad spectrum of price points and styles, including formal and casual outerwear, sportswear, performance wear and contemporary fashion.

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