Piper Jaffray analyst, Erinn Murphy, expects a weak report and call from G-III Apparel (NASDAQ: GIII) on 6/1. Her estimates are at the low end of guidance for both Q1 and FY17. The first fiscal quarter is the smallest quarter of the year representing ~18% of sales but a negligible amount of profits. With what has been a softening traffic environment (most markedly from the end of March through May), the analyst assumes that retail (24% sales) misses the company's annual comp plan. She is assuming no net growth for this division with negative store comps offsetting new store growth. On wholesale, while the environment has not been conducive for sell-ins and retailers' open-to-buy dollars are down for the year, GIII has several new brands it is bringing to the market this year & next. She notes also that on Macy's last call, despite the (6%) comp decline, GIII's categories (dresses & outerwear) were highlighted as above-average.

No change to Overweight rating or $51 PT

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Shares of G-III Apparel closed at $38.55 yesterday.