G-III Apparel Group (NASDAQ:GIII) Trading Down 4% – Here’s Why

G-III Apparel Group, LTD. (NASDAQ:GIII)’s share price was down 4% during mid-day trading on Wednesday . The stock traded as low as $30.65 and last traded at $30.8860. Approximately 137,550 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 514,074 shares. The stock had previously closed at $32.17.

Key Headlines Impacting G-III Apparel Group

Here are the key news stories impacting G-III Apparel Group this week:

• Positive Sentiment: G-III reported second-quarter GAAP diluted EPS of $0.46, up from $0.25 a year earlier and above analysts’ expectations. Gross margin expanded 440 basis points to 45.2%, helped by pricing and a shift toward higher-margin owned brands. G-III second-quarter results and guidance
• Positive Sentiment: The company raised fiscal 2027 GAAP net income guidance to $181 million-$185 million, or $4.10-$4.20 per share, excluding the Marc Jacobs acquisition. Management also said its go-forward brand portfolio grew at a high-single-digit rate. G-III earnings beat and raised EPS outlook
• Positive Sentiment: G-III completed its acquisition of Marc Jacobs alongside WHP Global. The brand is targeted to generate $1 billion in long-term annual revenue, strengthening G-III’s owned-brand portfolio and potential growth profile. Marc Jacobs acquisition completion
• Neutral Sentiment: G-III’s cash balance rose to $529.2 million while inventories fell 13% year over year, indicating improved liquidity and inventory management. The company also repurchased shares and paid dividends during the quarter.
• Negative Sentiment: Second-quarter net sales fell 10% to $554.1 million. Fiscal 2027 sales are expected to be approximately $2.71 billion, down from $2.96 billion, partly reflecting the loss of roughly $460 million in Calvin Klein and Tommy Hilfiger product sales. G-III quarterly earnings report
• Negative Sentiment: Underlying non-GAAP EPS was $0.26, only slightly above $0.25 last year, and full-year non-GAAP EPS guidance of $2.20-$2.30 is below the prior year’s $2.61. Management expects Marc Jacobs to be slightly dilutive in fiscal 2027, while third-quarter sales and earnings are also projected below the prior-year period.

Analyst Ratings Changes

GIII has been the subject of several research analyst reports. BTIG Research upped their price objective on G-III Apparel Group from $34.00 to $40.00 and gave the company a “buy” rating in a report on Friday, June 5th. Weiss Ratings upgraded G-III Apparel Group from a “hold (c)” rating to a “buy (b-)” rating in a report on Tuesday, June 9th. KeyCorp restated an “overweight” rating and set a $40.00 target price (up from $35.00) on shares of G-III Apparel Group in a report on Monday, June 8th. Zacks Research downgraded G-III Apparel Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Finally, Telsey Advisory Group reiterated a “market perform” rating and set a $38.00 price target (up from $29.00) on shares of G-III Apparel Group in a report on Monday, June 8th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $33.00.

G-III Apparel Group Trading Down 10.0%

The firm has a fifty day simple moving average of $34.50 and a 200 day simple moving average of $31.89. The stock has a market cap of $1.22 billion, a price-to-earnings ratio of 10.36 and a beta of 1.27.

G-III Apparel Group (NASDAQ:GIII) last announced its quarterly earnings data on Wednesday, September 2nd. The textile maker reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03. G-III Apparel Group had a net margin of 4.34% and a return on equity of 5.59%. The company’s revenue was down 9.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.25 EPS. On average, equities analysts expect that G-III Apparel Group, LTD. will post 2.24 earnings per share for the current year.

G-III Apparel Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be issued a $0.10 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.40 annualized dividend and a yield of 1.4%. G-III Apparel Group’s dividend payout ratio (DPR) is 14.13%.

Institutional Trading of G-III Apparel Group

A number of institutional investors have recently made changes to their positions in GIII. Amundi acquired a new stake in shares of G-III Apparel Group in the second quarter valued at about $344,000. HighTower Advisors LLC bought a new stake in shares of G-III Apparel Group during the 2nd quarter worth approximately $209,000. California State Teachers Retirement System grew its stake in shares of G-III Apparel Group by 3,825.1% in the second quarter. California State Teachers Retirement System now owns 1,408,404 shares of the textile maker’s stock valued at $47,477,000 after buying an additional 1,372,522 shares in the last quarter. Nykredit A S bought a new stake in G-III Apparel Group during the second quarter worth $33,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of G-III Apparel Group by 8.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 79,560 shares of the textile maker’s stock valued at $2,682,000 after purchasing an additional 6,325 shares during the period. Institutional investors own 92.13% of the company’s stock.

G-III Apparel Group Company Profile

G-III Apparel Group, Ltd. is a global fashion company engaged in the design, sourcing, marketing and distribution of women’s and men’s apparel, outerwear, footwear, handbags and fashion accessories. Founded in 1956 and headquartered in New York City, the company has grown from an importer of ladies’ apparel into a diversified apparel business with a portfolio of owned and licensed brands.

The company’s product offerings span a broad spectrum of price points and styles, including formal and casual outerwear, sportswear, performance wear and contemporary fashion.