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How Has G-III Apparel Performed in 4Q16 and 2016?

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Mar. 23 2016, Published 3:18 p.m. ET

Price movement of G-III Apparel

G-III Apparel Group (GIII) has a market cap of $2.0 billion. GIII fell by 19.4% to close at $44.52 per share on March 22, 2016. The price movements on a weekly, monthly, and year-to-date (or YTD) basis were -16.3%, -9.3%, and 0.59%, respectively.

Currently, GIII is trading 16.3% below its 20-day moving average, 9.0% below its 50-day moving average, and 23.3% below its 200-day moving average.

The iShares Russell 2000 ETF (IWM) invests 0.11% of its holdings in G-III Apparel. The ETF tracks a market cap–weighted index of US small-cap stocks. The index selects stocks ranked 1,001–3,000 by market cap. The YTD price movement of IWM was -2.7%.

The market caps of G-III Apparel’s competitors are as follows:

  • NIKE (NKE) – $110.5 billion
  • PVH Corporation (PVH) – $7.3 billion
  • Columbia Sportswear Company (COLM) – $4.2 billion
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Performance of G-III Apparel Group in fiscal 4Q16 and fiscal 2016

G-III Apparel Group reported fiscal 4Q16 net sales of $527.4 million, a rise of 2.5% compared to net sales of $514.3 million in fiscal 4Q15. The company’s cost of sales as a percentage of net sales rose by 3.1%, and its operating profit fell by 65.8% in fiscal 4Q16 compared to fiscal 4Q15.

Its net income and EPS (earnings per share) fell to $8.0 million and $0.17, respectively, in fiscal 4Q16, compared to $22.2 million and $0.48, respectively, in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, G-III reported net sales of $2,344.1 million, a rise of 10.7% YoY (year-over-year). Its net income rose to $114.3 million and its EPS fell to $2.46, in fiscal 2016, compared to net income and EPS of $110.4 million and $2.48, respectively, in fiscal 2015.

Its cash and inventory rose by 3.3% and 13.9%, respectively, in fiscal 2016. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $210.1 million in fiscal 2016, a rise of 12.6% compared to fiscal 2015.

The price-to-earnings and price-to-book value ratios of G-III Apparel were 16.1x and 2.3x, respectively, as of March 22, 2016.

Projections

The company has made the following projections for fiscal 2017 and fiscal 1Q17:

Fiscal 2017

  • net sales of ~$2.56 billion
  • net income in the range of $120.0 million–$125.0 million
  • EPS in the range of $2.55–$2.65
  • adjusted EBITDA in the range of $228.0 million–$236.0 million

Fiscal 1Q17

  • net sales of ~$475 million
  • net income in the range of $0.1 million–$2.4 million
  • EPS in the range of $0.00–$0.05

In the next part, we’ll look at Ford Motor Company.

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