Fashion conglomerate G-III (NASDAQ: GIII) will be announcing earnings results this Friday before the bell. Here’s what to expect.
G-III missed analysts’ revenue expectations last quarter, reporting revenues of $771.5 million, down 8.1% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is G-III a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting G-III’s revenue to decline 9.2% year on year, a further deceleration from the 4.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. G-III has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at G-III’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Movado delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 5.4%, and Figs reported revenues up 28%, topping estimates by 4.7%. Movado traded up 19.3% following the results while Figs was down 24.3%.
Read our full analysis of Movado’s results here and Figs’s results here.
Investors in the consumer discretionary - apparel and accessories segment have had steady hands going into earnings, with share prices flat over the last month. G-III is up 4.3% during the same time and is heading into earnings with an average analyst price target of $32.67 (compared to the current share price of $32.29).
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