Why G-III Apparel Group Ltd's Stock Skyrocketed 21% in a Quarter

G-III Apparel Group Ltd (GIII, Financial) has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $1.22 billion, with its stock price at $26.72. Over the past week, the stock price has seen a gain of 1.00%, and over the past three months, it has seen a substantial gain of 21.15%. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently at $29.83, up from $28.61 three months ago. Despite the increase in GF Value, the stock remains modestly undervalued, similar to its valuation three months ago.

About G-III Apparel Group Ltd

G-III Apparel Group Ltd operates in the Manufacturing - Apparel & Accessories industry. The company has a diverse portfolio of apparel, footwear, and accessories that it sells under its own brands, licensed brands, and private-label brands. Its portfolio is anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. G-III has two reportable operations: Wholesale Operations and Retail Operations. The majority of its revenues are derived from Wholesale operations. 1720081636458033152.png

Profitability Analysis

G-III Apparel Group Ltd has a Profitability Rank of 7/10, indicating a strong profitability compared to its industry peers. The company's Operating Margin is 6.29%, better than 61.38% of the companies in the industry. However, its ROE and ROA are -12.26% and -6.30% respectively, which are lower than the industry average. The company's ROIC is 8.04%, better than 72.67% of the companies in the industry. Over the past decade, the company has had 9 years of profitability, better than 72.43% of the companies in the industry. 1720081660067770368.png

Growth Prospects

The company's Growth Rank is 4/10, indicating moderate growth compared to its industry peers. Its 3-Year Revenue Growth Rate per Share is 1.60%, better than 46.63% of the companies in the industry. The 5-Year Revenue Growth Rate per Share is 0.60%, better than 49.32% of the companies in the industry. The company's future total revenue growth rate estimate is 2.04%, better than 25.4% of the companies in the industry. The 3-Year EPS without NRI Growth Rate is 10.20%, better than 49.48% of the companies in the industry, and the 5-Year EPS without NRI Growth Rate is 16.70%, better than 65.66% of the companies in the industry. 1720081676874346496.png

Major Stock Holders

The top three holders of G-III Apparel Group Ltd's stock are HOTCHKIS & WILEY, Francisco Garcia Parames (Trades, Portfolio), and Jim Simons (Trades, Portfolio), holding 408,190 shares (0.9%), 349,422 shares (0.77%), and 137,403 shares (0.3%) respectively.

Competitive Landscape

The company's top three competitors in the industry are FIGS Inc(FIGS, Financial) with a stock market cap of $916.457 million, Oxford Industries Inc(OXM, Financial) with a stock market cap of $1.33 billion, and Hanesbrands Inc(HBI, Financial) with a stock market cap of $1.52 billion.

Conclusion

In conclusion, G-III Apparel Group Ltd has shown strong performance in the stock market over the past three months, with a significant increase in its stock price. The company has a strong profitability rank and has shown moderate growth compared to its industry peers. However, its ROE and ROA are lower than the industry average. The company's stock is held by major investors, and it faces competition from companies with similar market caps in the industry. Despite the challenges, the company's stock remains modestly undervalued, indicating potential for further growth.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.