Stock Earnings in Review: G-III Apparel Group, Ltd. (NASDAQ:GIII)

G-III Apparel Group, Ltd. (NASDAQ:GIII) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $0.06 per share on revenue of $457.4M. Analysts had been modeling earning per share of $0.02 with $473.21M in revenue.

G-III Apparel Group, Ltd. (NASDAQ:GIII) announced operating results for the first quarter of fiscal 2017 that ended April 30, 2016.

For the quarter ended April 30, 2016, G-III reported that net sales increased 6% to a first quarter record of $457.4 million compared to $433.0 million in the year-ago period. The Company’s net income for the first quarter was $2.8 million, or $0.06 per diluted share, compared to $6.8 million, or $0.15 per diluted share, in the prior year’s comparable period.

Morris Goldfarb, G-III’s Chairman, Chief Executive Officer and President, said, “Fiscal 2017 got off to a strong start in our wholesale business, particularly with respect to our Calvin Klein products and our dress businesses including Eliza J and the newly launched Tommy Hilfiger dress line. Although our own retail businesses did not perform to plan, we expect many of the measures we are taking to improve top and bottom line performance for these businesses in the second half of the year. We are looking forward to our upcoming multi-category product launches for Tommy Hilfiger, as well as further penetration and distribution of the Karl Lagerfeld brand.”

Outlook

The Company today reiterated its prior guidance for the full fiscal 2017 year ending January 31, 2017. The Company continues to expect net sales of approximately $2.56 billion and net income between $120 million and $125 million, or a range between $2.55 and $2.65 per diluted share. For the fiscal 2016 year ended January 31, 2016, net sales were $2.34 billion and net income was $114.3 million, or $2.46 per diluted share.

On an adjusted basis, excluding items resulting in other income in Fiscal 2016 of $0.02 per share, net of taxes, non-GAAP net income per diluted share was $2.44 for the 2016 fiscal year.

The Company also continues to project adjusted EBITDA for fiscal 2017 to increase between 9% and 12%, to between approximately $228 million and $236 million. Adjusted EBITDA for fiscal 2016 was $210.1 million.

For its second fiscal quarter ending July 31, 2016, the Company is forecasting net sales of approximately $485.0 million compared to $473.9 million in the comparable quarter last year. The Company is also forecasting net income for the second fiscal quarter between $7.0 million and $9.0 million, or between $0.15 and $0.19 per diluted share, compared to net income of $12.5 million, or $0.27 per diluted share, in last year’s second quarter.

Non-GAAP Financial Measures

Reconciliations of GAAP net income per share to non-GAAP net income per share and of GAAP net income to adjusted EBITDA are presented in tables accompanying the condensed financial statements included in this release and provide useful information to evaluate the Company’s operational performance. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with GAAP.

G-III Apparel Group, Ltd. earnings per share showed a decreasing trend of -1.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 303%.Analysts project EPS growth over the next 5 years at 13.7%. It has EPS annual growth over the past 5 fiscal years of 11.3% when sales grew 17.1. It reported 5.6% sales growth, and -60% EPS decline in the last quarter.

The stock is trading at $45.23, up 25.15% from 52-week low of $36.14. The stock trades down -38.82% from its peak of $73.93 and 17.47% above the consensus price target of $53.13. Its volume clocked up at 0.54 million shares which is lower than the average volume of 0.62 million shares. Its market capitalization currently stands at $1.98B.

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