NasdaqGS:GIII

Stock Analysis Report

Executive Summary

G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States and internationally.

Rewards

Trading at 74.2% below its fair value

Earnings are forecast to grow 9.66% per year

Earnings grew by 25.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has G-III Apparel Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GIII has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

GIII

2.6%

US Luxury

2.0%

US Market


1 Year Return

-11.9%

GIII

22.3%

US Luxury

23.5%

US Market

Return vs Industry: GIII underperformed the US Luxury industry which returned 28% over the past year.

Return vs Market: GIII underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GIIIIndustryMarket
7 Day-1.4%2.6%2.0%
30 Day-9.8%2.3%4.3%
90 Day17.7%9.2%12.2%
1 Year-11.9%-11.9%24.8%22.3%26.1%23.5%
3 Year13.0%13.0%75.4%67.6%53.1%43.2%
5 Year-36.8%-36.8%59.5%48.9%75.5%56.1%

Price Volatility Vs. Market

How volatile is G-III Apparel Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is G-III Apparel Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIII ($30.47) is trading below our estimate of fair value ($117.88)

Significantly Below Fair Value: GIII is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GIII is good value based on its PE Ratio (10.4x) compared to the Luxury industry average (18.8x).

PE vs Market: GIII is good value based on its PE Ratio (10.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GIII is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: GIII is good value based on its PB Ratio (1.2x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is G-III Apparel Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIII's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).

Earnings vs Market: GIII's earnings (9.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: GIII's earnings are forecast to grow, but not significantly.

Revenue vs Market: GIII's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: GIII's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GIII's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has G-III Apparel Group performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIII has high quality earnings.

Growing Profit Margin: GIII's current net profit margins (4.5%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: GIII's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: GIII's earnings growth over the past year (25.7%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: GIII earnings growth over the past year (25.7%) exceeded the Luxury industry 15%.


Return on Equity

High ROE: GIII's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is G-III Apparel Group's financial position?


Financial Position Analysis

Short Term Liabilities: GIII's short term assets ($1.7B) exceed its short term liabilities ($713.2M).

Long Term Liabilities: GIII's short term assets ($1.7B) exceed its long term liabilities ($955.1M).


Debt to Equity History and Analysis

Debt Level: GIII's debt to equity ratio (53.6%) is considered high.

Reducing Debt: GIII's debt to equity ratio has increased from 20.3% to 53.6% over the past 5 years.

Debt Coverage: GIII's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: GIII's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: GIII has a high level of physical assets or inventory.

Debt Coverage by Assets: GIII's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is G-III Apparel Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GIII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GIII's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GIII's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GIII's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GIII's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of G-III Apparel Group's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Morris Goldfarb (68yo)

0yrs

Tenure

US$17,698,980

Compensation

Mr. Morris Goldfarb serves as the Chairman of the Board and Chief Executive Officer of G-III Apparel Group, Ltd. and served as its President until September 15, 2016. Mr. Goldfarb served as the President a ...


CEO Compensation Analysis

Compensation vs Market: Morris's total compensation ($USD17.70M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Morris's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Management: GIII's management team is considered experienced (5 years average tenure).


Board Age and Tenure

14.4yrs

Average Tenure

67.5yo

Average Age

Experienced Board: GIII's board of directors are seasoned and experienced ( 14.4 years average tenure).


Insider Trading

Insider Buying: GIII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$155,94609 Jan 20
Willem van Bokhorst
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,753
Max PriceUS$32.81
BuyUS$1,058,80011 Jul 19
Morris Goldfarb
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares40,000
Max PriceUS$26.47
BuyUS$942,12118 Jun 19
Morris Goldfarb
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares37,106
Max PriceUS$25.39
BuyUS$85,64018 Jun 19
Morris & Arlene Goldfarb Family Foundation Inc., Endowment Arm
EntityCompany
Shares3,373
Max PriceUS$25.39
SellUS$2,966,08916 Apr 19
Sammy Aaron
EntityIndividual
Role
Vice Chairman
Vice Chairman & President
Shares71,766
Max PriceUS$41.33
SellUS$87,40015 Apr 19
Laura Pomerantz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,105
Max PriceUS$41.52
SellUS$40,51003 Apr 19
Alan Feller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$40.51

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Deborah Gaertner (64yo)

    Group President of G-III Women's Leather Fashions

    • Tenure: 11.8yrs
    • Compensation: US$376.26k
  • Morris Goldfarb (68yo)

    Chairman & CEO

    • Compensation: US$17.70m
  • Jeanette Nostra-Katz (67yo)

    Senior Advisor & Director

    • Tenure: 6.3yrs
  • Wayne Miller (61yo)

    COO & Secretary

    • Tenure: 16.1yrs
    • Compensation: US$5.83m
  • Neal Nackman (59yo)

    Chief Financial Officer

    • Tenure: 14.3yrs
    • Compensation: US$1.57m
  • Thomas Brosig (69yo)

    Independent Director

    • Tenure: 28yrs
    • Compensation: US$168.00k
  • Sammy Aaron (60yo)

    Vice Chairman & President

    • Tenure: 14.5yrs
    • Compensation: US$11.53m
  • Jeffrey Goldfarb (42yo)

    Executive VP

    • Tenure: 11yrs
    • Compensation: US$3.01m
  • Priya Trivedi

    VP of Investor Relations & Treasurer

    • Barbara Kennedy

      President of Wholesale-Design

      • Tenure: 3yrs

    Board Members

    • Morris Goldfarb (68yo)

      Chairman & CEO

      • Compensation: US$17.70m
    • Jeanette Nostra-Katz (67yo)

      Senior Advisor & Director

      • Tenure: 6.3yrs
    • Alan Feller (77yo)

      Independent Director

      • Tenure: 24yrs
      • Compensation: US$197.96k
    • Willem van Bokhorst (73yo)

      Independent Director

      • Tenure: 31yrs
      • Compensation: US$162.96k
    • Thomas Brosig (69yo)

      Independent Director

      • Tenure: 28yrs
      • Compensation: US$168.00k
    • Rick White (65yo)

      Lead Independent Director

      • Compensation: US$253.96k
    • Laura Pomerantz (71yo)

      Independent Director

      • Tenure: 14.3yrs
      • Compensation: US$149.96k
    • Cheryl Vitali (58yo)

      Independent Director

      • Tenure: 8.5yrs
      • Compensation: US$139.96k
    • Sammy Aaron (60yo)

      Vice Chairman & President

      • Tenure: 14.5yrs
      • Compensation: US$11.53m
    • Jeffrey Goldfarb (42yo)

      Executive VP

      • Tenure: 11yrs
      • Compensation: US$3.01m

    Company Information

    G-III Apparel Group, Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: G-III Apparel Group, Ltd.
    • Ticker: GIII
    • Exchange: NasdaqGS
    • Founded: 1956
    • Industry: Apparel, Accessories and Luxury Goods
    • Sector: Consumer Durables
    • Market Cap: US$1.447b
    • Shares outstanding: 47.83m
    • Website: https://www.giii.com

    Number of Employees


    Location

    • G-III Apparel Group, Ltd.
    • 512 Seventh Avenue
    • 31st Floor
    • New York
    • New York
    • 10018
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    GIIINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1989
    GI4DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1989

    Biography

    G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States and internationally. The company operates in two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women’s suits, and women’s performance wear; and women’s handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, G.H. Bass, Andrew Marc, Marc New York, Black Rivet, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Guess?, Kenneth Cole, Cole Haan, Levi’s, Vince Camuto, Kensie, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, National Hockey League, Touch by Alyssa Milano, Hands High, Collegiate Licensing Company, Starter, and Alliance of American Football, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2019, it operated 308 leased retail stores, which included 139 Wilsons Leather stores, 111 G.H. Bass stores, 42 DKNY stores, 11 Karl Lagerfeld Paris stores, and 5 Calvin Klein Performance stores. The company also operates Wilsons Leather, G.H. Bass, DKNY, and Karl Lagerfeld Paris branded online stores. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 23:40
    End of Day Share Price2020/01/17 00:00
    Earnings2019/10/31
    Annual Earnings2019/01/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.