Fashion conglomerate G-III (NASDAQ: GIII) will be reporting earnings this Wednesday before market hours. Here’s what investors should know.
G-III beat analysts’ revenue expectations last quarter, reporting revenues of $536 million, down 8.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 7% year on year, a further deceleration from the 4.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally 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 Q2 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 28.8%, beating analysts’ expectations by 5.6%, and Movado reported revenues up 4.9%, topping estimates by 3.4%. Figs traded up 26.9% following the results while Movado was down 1.3%.
Read our full analysis of Figs’s results here and Movado’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary - apparel and accessories stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.3% on average over the last month. G-III is down 10.4% during the same time and is heading into earnings with an average analyst price target of $39.33 (compared to the current share price of $32.62).
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