BTIG Reiterates Buy Rating on G-III Apparel (GIII), reduces EPS estimates

BTIG analyst Robert Drbul reiterated a Buy rating and $34.00 price target on G-III Apparel (NASDAQ: GIII)

The analyst commented, "III reported net sales of $771 million (vs. BTIGe $789 million), down -8.1% y/y. Adjusted EPS was $0.30 (vs. BTIGe and consensus $0.59). The gross margin declined 250bps to 37.0% (vs. BTIGe 36.7%), and SG&A growth of 6.6% led to an operating margin of 2.3% (vs. BTIGe 4.8%)... We are reducing our FY27 EPS estimate to $2.10 from $2.95. We expect HSD revenue decline, but believe the gross margin can hit expansion of 300bps for the year. This substantial expansion will be driven in part by the lapping of tariffs, and from the shift in penetration toward their higher margin owned brands as the PVH licenses roll off. The resulting gross margin figures should be some of the highest the company has seen. We expect GIII to lean into SG&A and estimate SG&A to increase around 1% y/y on a dollar basis. We are also introducing FY28 estimates which include top-line growth of 3%, further GM expansion, and SG&A savings. Our adjusted EPS estimate is $2.40."

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 $29.57 yesterday.

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