A Look at G-III Apparel Group’s (GIII) Valuation Following Disappointing Earnings and Lowered Outlook

Something big just happened with G-III Apparel Group (GIII) and it is making investors take notice. A fresh earnings report delivered numbers that came up short. Sales and profits both slipped versus last year, and management did not sugarcoat it with guidance either. The outlook for both the coming quarter and the full fiscal year points to continued softness in sales and earnings, a sign that demand or execution challenges are not just a one-off. This cautious tone has clearly shaped market sentiment over the past year. G-III Apparel Group shares are down 15% in the past year and are still trailing for 2025 so far, despite climbing nearly 30% over the last three months. Even with ongoing share buybacks, recent events have injected some uncertainty and pulled momentum in a different direction than the longer-term gains seen in the past three and five years. After this string of weaker results and lowered expectations, the big question for investors is whether G-III Apparel Group is now undervalued, or if the market has already priced in the tougher road ahead.

Most Popular Narrative: 19.5% Undervalued

The most widely followed narrative suggests that G-III Apparel Group is currently undervalued by nearly 20%, with future profits and brand growth setting the stage for a potentially higher fair value.

Strategic investments and efficient capital management are poised to improve operating margins, profitability, and earnings per share. The loss of major brand licenses and supply chain disruptions pose significant revenue risks. At the same time, new brand launches and geopolitical tensions further challenge profitability.

Think G-III’s future is already priced in? Think again. This narrative’s optimism hinges on bold financial shifts, international expansion, and a dramatic brand transformation. The interesting detail is that its calculation of fair value depends on some notable estimates for revenue, margins, and profit growth. Interested in what sets these projections apart from the market’s view? There may be more to G-III’s stock story than meets the eye.

Result: Fair Value of $33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the loss of key brand licenses and ongoing supply chain challenges could quickly threaten these optimistic scenarios for G-III’s recovery.

Find out about the key risks to this G-III Apparel Group narrative.

Another View: SWS DCF Model Says Overvalued

While some see G-III Apparel Group as undervalued based on growth and earnings estimates, our DCF model offers a contrasting perspective and suggests the shares are actually overvalued. Which view best reflects G-III’s next chapter?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out G-III Apparel Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own G-III Apparel Group Narrative

If you have your own take or want to dive deeper, you can build a personal story around the data in just a few minutes. Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding G-III Apparel Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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