G-III Apparel Group, Ltd. GIII has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.

The company ended yesterday’s trading session at $32.37, above its 50 and 200-day SMAs of $31.90 and $29.22, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in GIII’s financial stability and growth potential.

GIII Trades Above 50 & 200-Day Moving Averages

Image Source: Zacks Investment Research

Shares of this distinguished global fashion entity are currently trading 10.5% below its 52-week high of $36.18, reached on Dec. 13, 2024, making investors contemplate their next moves. In the past six months, GIII stock has gained 19.7% compared with the Zacks Textile - Apparel industry’s 30.1% growth.

The company’s focus on global expansion and strategic brand building has enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 17.1% and 11.3%, respectively, at the same time frame.

GIII Stock Past Six-Month Performance

Image Source: Zacks Investment Research

G-III’s Strong Brand Momentum

G-III Apparel’s strategic emphasis on expanding its owned brands continues to yield impressive results, with DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin experiencing significant growth in the third quarter of fiscal 2025. These brands are increasingly contributing to G-III’s success by driving higher sales, improved gross margins and increased licensing revenues.

DKNY posted more than 30% year-over-year sales growth in the fiscal third quarter, fueled by strong wholesale demand in North America and an expanded retail presence, adding 700 new points of sale for the fall season. Similarly, Karl Lagerfeld saw more than 30% growth in North America, with international momentum building. Notably, the men’s category for Karl Lagerfeld is expected to account for more than 20% of its international sales in fiscal 2025, up from 17% in the previous year.

Donna Karan’s relaunch has exceeded expectations, achieving double-digit growth in retail sales and delivering some of the highest Average Unit Retail and sell-through rates in G-III’s portfolio. The brand’s retail presence expanded from 900 locations in spring 2024 to 1,200 in fall 2024, with plans to reach 1,600 by spring 2025. The long-term annual sales potential for Donna Karan is estimated to surpass $1 billion.

Expanding G-III’s Global Footprint

G-III Apparel continues to prioritize international expansion, particularly in Europe, where its partnership with AWWG is unlocking new growth opportunities. This collaboration is in its early stages but is already driving synergies and strengthening global operations. Key brands, such as DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin, are making notable progress in international markets, supported by targeted marketing and enhanced distribution strategies.

Donna Karan’s relaunch is outperforming expectations, underscoring its potential for geographic expansion. Meanwhile, DKNY is solidifying its presence in international markets through strategic retail partnerships and the success of global campaigns like the DKNY 24/7 Fragrance launch.

Retail Evolution at GIII

G-III’s retail segment is undergoing a major transformation under new leadership. For the fiscal third quarter, net sales reached $42.3 million, up from $32.7 million in the prior-year period. This growth was achieved despite the closure of seven stores, driven by strong double-digit increases in comparable sales.

On the last earnings call, management announced that the retail segment is on track to break even in fiscal 2025 and projected to achieve profitability in fiscal 2026, marking its first profitable year in a decade. Improved retail execution is allowing G-III to showcase the full lifestyle appeal of its brands while leveraging valuable customer insights to strengthen omnichannel capabilities.

G-III's Estimates Indicate Upward Adjustments

The positive sentiment surrounding G-III Apparel is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 60 days, analysts have increased their estimates for the current fiscal year, resulting in an upward revision of 15 cents to $4.16 per share. The consensus estimate for earnings for the next fiscal year has also advanced 10 cents to $4.21 per share. This indicates year-over-year growth of 3% and 1.2%, respectively.

The Zacks Consensus Estimate for the current and next year’s sales is pegged at $3.15 billion and $3.25 billion, respectively, indicating year-over-year growth of 1.7% and 3.2%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Image Source: Zacks Investment Research

Conclusion

G-III shows strong momentum, driven by impressive sales growth from its key brands like DKNY and Karl Lagerfeld. The company is expanding globally and transforming its retail operations, which strengthens market position. Positive earnings revisions indicate confidence in its financial stability and growth prospects. With strategic brand and market expansion, GIII offers long-term value for investors seeking growth opportunities. The company currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Some other top-ranked stocks are lululemon athletica inc. LULU, Deckers Outdoor Corporation DECK and The Gap, Inc. GAP.

lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. It presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for DECK’s fiscal 2024 earnings and sales implies growth of 15.2% and 14.2%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 41.1%.

Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently has a Zacks Rank #2.

The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the fiscal 2024 reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

The Gap, Inc. (GAP) : Free Stock Analysis Report

G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research