Brean Capital Reiterates Buy on G-III Apparel Group (GIII) Following 2Q16 Earnings

Brean Capital reiterated a Buy rating and $75.00 price target on G-III Apparel (NASDAQ: GIII) following the company's 2Q16 earnings results. Earnings per diluted share increased ~93% to $0.27 from $0.14, beating the consensus estimate of $0.20. Total net sales increased ~12% to $474 million from $424 million, exceeding the consensus estimate of $470 million. Management raised FY16 EPS of $2.78-$2.88 per share compare to previous guidance
between $2.66 and $2.76 per share, while net sales guidance remains at $2.40 billion.

Analyst Liz Pierce commented, "We believe YTD results highlight the power of GIII’s portfolio of brands, which we attribute to well-made/trend right products offered at compelling price points. We further believe the company has multiple organic sales and earnings drivers including product line additions/extensions, increased real estate at existing accounts, new licensing relationships, the expansion and increased productivity of its retail platform, the development of new brands and transformational acquisitions. Accordingly, we reiterate our Buy rating and $75 target price. Our $75 target price is based on a multiple of ~22x our FY17 EPS of $3.35 and PEG ratio of ~1.2x."

For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.

Shares of G-III Apparel closed at $67.86 yesterday.

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