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G-III Apparel Group (G-III Apparel Group) Operating Income : $290 Mil (TTM As of Jan. 2024)


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What is G-III Apparel Group Operating Income?

G-III Apparel Group's Operating Income for the three months ended in Jan. 2024 was $53 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $290 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. G-III Apparel Group's Operating Income for the three months ended in Jan. 2024 was $53 Mil. G-III Apparel Group's Revenue for the three months ended in Jan. 2024 was $765 Mil. Therefore, G-III Apparel Group's Operating Margin % for the quarter that ended in Jan. 2024 was 6.91%.

Good Sign:

G-III Apparel Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

G-III Apparel Group's 5-Year average Growth Rate for Operating Margin % was 5.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. G-III Apparel Group's annualized ROC % for the quarter that ended in Jan. 2024 was 7.65%. G-III Apparel Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 15.66%.


G-III Apparel Group Operating Income Historical Data

The historical data trend for G-III Apparel Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

G-III Apparel Group Operating Income Chart

G-III Apparel Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 247.03 100.72 312.55 240.22 290.10

G-III Apparel Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.00 15.26 31.49 190.51 52.84

G-III Apparel Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $290 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


G-III Apparel Group  (NAS:GIII) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

G-III Apparel Group's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=211.364 * ( 1 - 26.73% )/( (2172.966 + 1873.891)/ 2 )
=154.8664028/2023.4285
=7.65 %

where

Invested Capital(Q: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2749.333 - 378.976 - ( 197.391 - max(0, 602.344 - 1713.137+197.391))
=2172.966

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2681.164 - 299.444 - ( 507.829 - max(0, 493.628 - 1660.318+507.829))
=1873.891

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

G-III Apparel Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=180.48/( ( (273.506 + max(1028.398, 0)) + (271.97 + max(730.474, 0)) )/ 2 )
=180.48/( ( 1301.904 + 1002.444 )/ 2 )
=180.48/1152.174
=15.66 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(863.221 + 591.53 + 60.995) - (378.976 + 0 + 108.372)
=1028.398

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(562.363 + 520.426 + 69.7) - (299.444 + 0 + 122.571)
=730.474

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

G-III Apparel Group's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=52.841/764.782
=6.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


G-III Apparel Group Operating Income Related Terms

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G-III Apparel Group (G-III Apparel Group) Business Description

Traded in Other Exchanges
Address
512 Seventh Avenue, New York, NY, USA, 10018
G-III Apparel Group Ltd is a textile company. It makes a wide range of apparel, footwear, and accessories that it sells under its own brands, licensed brands, and private-label brands. G-III has a substantial portfolio for licensed and proprietary brands, anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. The company has two reportable operations: Wholesale Operations and Retail Operations. The Wholesale operations segment includes sales of products under brands licensed by us from third parties, as well as sales of products under its own brands and private label brands. The retail operations segment consists primarily of Wilsons Leather, G.H. Bass, and DKNY retail stores. It derives most of its revenues from Wholesale operations.
Executives
Neal Nackman officer: Chief Financial Officer/Treas C/O G-III APPAREL GROUP LTD, 512 SEVENTH AVENUE, NEW YORK NY 10019
Laura H Pomerantz director
Alan Feller director C/O GIII APPAREL GROUP LTD, 512 SEVENTH AVE, NEW YORK NY 10018
Sammy Aaron director, officer: Vice Chairman C/O GIII APPAREL GROUP, 512 SEVENTH AVENUE, NEW YORK NY 10019
Andrew Yaeger director 512 SEVENTH AVE., NEW YORK NY 10018
Joyce F Brown director C/O RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Michael A Shaffer director C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016
Morris Goldfarb director, 10 percent owner, officer: Chief Executive Officer C/O G-III APPAREL GROUP, 345 W 37TH ST, NY NY 10018
Amigo Victor Herrero director C/O CHW ACQUISITION CORPORATION, 2 MANHATTANVILLE ROAD, SUITE 403, PURCHASE NY 10577
Jeffrey David Goldfarb director, other: Dir. of Business Develop. G-III APPAREL, 512 SEVENTH AVENUE, NEW YORK NY 10018
Patti H Ongman director C/O MACY'S, INC., 7 WEST SEVENTH STREET, CINCINNATI OH 45202
Lisa W Wardell director 5900 RYLAND DRIVE, BETHESDA MD 20817
Thomas Brosig director C/O GIII APPAREL GROUP LTD, 512 SEVENTH AVE, NEW YORK NY 10018
Wayne S Miller officer: Chief Operating Officer C/O GIII APPAREL GROUP LTD, 512 SEVENTH AVE, NEW YORK NY 10018
Robert L Johnson director C/O RLJ COMPANIES, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814