Why G-III Apparel's Wholesale Exposure Remains A Concern Despite Strong Q2 Earnings
Portfolio Pulse from Nabaparna Bhattacharya
G-III Apparel Group reported strong Q2 FY24 earnings with sales growth of 9% YoY to $659.76 million, beating the analyst consensus. Gross profit rose 20.8% YoY to $276.6 million. Despite this, Telsey Advisory Group reiterated the Market Perform rating on G-III Apparel with the same price target of $22. The analyst praised GIII's efforts to grow its DTC penetration and strengthen its owned brand portfolio but expressed concern about GIII's wholesale exposure in the current operating environment.
September 08, 2023 | 7:20 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
G-III Apparel's strong Q2 earnings beat analyst expectations, but concerns about its wholesale exposure persist. The stock's rating remains at Market Perform with a price target of $22.
G-III Apparel's strong Q2 earnings and sales growth are positive indicators for the company. However, the analyst's concern about the company's wholesale exposure could potentially impact the stock negatively. The reiteration of the Market Perform rating and unchanged price target suggest a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100