G-III Apparel Group, Ltd. GIII reported mixed fourth-quarter fiscal 2015 results. Adjusted earnings of 98 cents per share fared significantly better than the Zacks Consensus Estimate of 83 cents, but revenues of $514.3 million fell short of the Zacks Consensus Estimate of $528 million.
However, on a year-over-year basis, both adjusted earnings and revenues grew 58% and 9%, respectively.
Including one-time items, earnings came in at 96 cents, up 54.8% year over year.
Sales continue to get a boost from the acquisition of G.H. Bass & Co. Also, G-III Apparel’s wholesale and retail businesses have been displaying consistent improvement.
Gross profit for the quarter escalated 10.4% to $183.5 million with gross margin expanding 50 basis points (bps) to 35.7%. Additionally, operating profit advanced 66.2% to $36.3 million. Operating margin for the quarter rose 250 bps to 7.1%.
Fiscal 2015 in Brief
For the fiscal ended Jan 31, 2015, G-III Apparel’s adjusted earnings increased 21% year over year to $4.54 a share and outdid the Zacks Consensus Estimate of $4.37 per share. Net sales of $2,116.9 million were up 23.2% but fell short of the Zacks Consensus Estimate of $2,132 million.
Balance Sheet
G-III Apparel ended the quarter with cash balance of $128.4 million, total assets worth $1,046.7 million and stockholders’ equity of approximately $761.13 million. Capital expenditures came in at $43 million for the fiscal year.
Outlook
Management expects revenues of $2.37 billion for fiscal 2016, up nearly 12% from fiscal 2015. Adjusted EBITDA is expected to be in the range of $214–$224 million as against $186.6 million reported in fiscal 2015.
Earnings per share are expected to be in the band of $5.05 and $5.25. The Zacks Consensus Estimate is pegged at $5.22 per share.
For the first quarter, sales are expected to be $406 million as against $366 million reported in the first quarter of fiscal 2015. Earnings are expected to be in the range of 5–15 cents per share as against 6 cents earned in the prior-year quarter. The Zacks Consensus Estimate stands at 12 cents per share.
Other Stocks to Consider
G-III Apparel currently holds a Zacks Rank #2 (Buy). Other stocks in the retail sector worth considering include Express Inc. EXPR, Citi Trends, Inc. CTRN and Casey's General Stores, Inc. CASY. All sport a Zacks Rank #1 (Strong Buy).
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