Piper Jaffray Raise PT, Estimates on G-III (GIII) on Better-than-Expected Q3 Despite Weather

Piper Jaffray reiterated an Overweight rating on G-III Apparel (NASDAQ: GIII), and raised the price target to $57.00 (from $52.00), following the company's 3Q earnings report. Tied to weakness in weather trends, outerwear sell-throughs have been slower and as such, Q4 is expected to be more promotional to work through higher inventory levels. The company mentioned on its conference call that they believe outerwear, while soft, is manageable, and that year-end inventory will be clean. The company highlighted that the step up in the buyback authorization does not mean acquisitions are off the table.

Analyst Erinn Murphy commented, "We are maintaining our long-term positive stance on GIII and raising estimates following the company's better-than-expected Q3. On the call, we were most encouraged that the company believes outerwear, while soft, is manageable. To that end, the company believes year-end inventory will be clean. Strength was notable in dress (CK dresses, Eliza J, Vince Camuto all strong in Q3). Accessories and performance (CK) were strong. Retail was softer than plan--Wilsons comped down 12%, GH Bass comped +4% and VBQ was down (HSD). That said, when weather has cooled, Wilsons comps have improved. As it relates to capital allocation, the company highlighted that the step up in the buyback authorization does not mean acquisitions are off the table. Acquisitions remain top of mind for the team."

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 $52.02 yesterday.

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