Piper Jaffray Remains Bullish on G-III Apparel Group (GIII) Following 2Q EPS Beat
Piper Jaffray reiterated an Overweight rating and $86.00 price target on G-III Apparel (NASDAQ: GIII) following the company's 2Q16 earnings results. EPS of $0.27 came in above Street's estimate of $0.20). Sales came in at $474M (up 12% Y/Y), above consensus of $470M. The company issued Q3 guidance for sales and EPS of $920M and $1.78- $1.83 vs. Street's $911M and $1.82. GIII raised its FY16 EPS guidance from $2.66-$2.76 to $2.78-$2.88.
Analyst Erinn Murphy commented, "We are reiterating our OW rating following another beat & raise from GIII in which Q2 EPS of $0.27 came in above our estimate of $0.21 (Street: $0.20). Sales came in at $474M (up 12% Y/Y), above our estimate of $470M. While the company beat consensus by $0.07, the FY16 EPS range was raised by $0.12--suggesting further growth opportunities in 2H. To wit, EPS for FY16 is now forecasted in the range of $2.78-$2.88--up from $2.66-$2.76, prior. More importantly, revenue guidance for Q3 now implies low-teens growth (vs. our current low-double digit growth rate) and Q3's EPS incorporated the Street estimate. We would be buyers of GIII and will revisit our model and price target following the 8:30 ET conference call. We are eager to hear more about how the outerwear orderbook is trending, the turnaround traction at GH Bass and plans for Karl Lagerfeld in 2016."
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Shares of G-III Apparel closed at $66.91 yesterday.