G-III Apparel Group (NASDAQ:GIII) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, “Shares of G-III Apparel have underperformed the industry in the past three months. We note that the company is witnessing sluggishness in the retail category of late stemming from weak brands and store closures. Although the company has been striving to improve retail operations, such efforts are yet to yield results. Also, stiff competition and adverse currency fluctuations pose threats. However, the company boasts a robust earnings surprise trend. In fact, fourth-quarter fiscal 2019 results marked the company’s eight straight bottom-line beat, courtesy of robust wholesale business and strength in DKNY stores. Additionally, the company has been making efforts to expand these banners globally, mainly by augmenting licensing capabilities. Driven by a strong quarter and continued business momentum, management provided an encouraging view for the first quarter and fiscal 2020.”

A number of other brokerages have also weighed in on GIII. Piper Jaffray Companies lowered shares of G-III Apparel Group from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $43.00 to $35.00 in a report on Tuesday, May 14th. BidaskClub upgraded shares of G-III Apparel Group from a “hold” rating to a “buy” rating in a report on Friday, April 5th. ValuEngine lowered shares of G-III Apparel Group from a “hold” rating to a “sell” rating in a report on Monday, May 13th. Needham & Company LLC restated a “buy” rating and issued a $55.00 price objective (up from $50.00) on shares of G-III Apparel Group in a report on Friday, March 22nd. Finally, Bank of America initiated coverage on shares of G-III Apparel Group in a report on Friday, March 1st. They issued a “buy” rating and a $45.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, three have given a hold rating and eight have assigned a buy rating to the company. G-III Apparel Group presently has an average rating of “Hold” and a consensus price target of $46.55.

G-III Apparel Group stock opened at $30.29 on Tuesday. The company has a market cap of $1.52 billion, a price-to-earnings ratio of 10.59, a price-to-earnings-growth ratio of 0.65 and a beta of 1.00. G-III Apparel Group has a 52-week low of $25.43 and a 52-week high of $51.20. The company has a current ratio of 2.16, a quick ratio of 1.17 and a debt-to-equity ratio of 0.33.

G-III Apparel Group (NASDAQ:GIII) last released its earnings results on Thursday, March 21st. The textile maker reported $0.55 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.11. G-III Apparel Group had a net margin of 4.49% and a return on equity of 12.74%. The company had revenue of $766.80 million for the quarter, compared to analyst estimates of $767.89 million. During the same period in the prior year, the business earned $0.26 EPS. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. Equities analysts expect that G-III Apparel Group will post 3.28 earnings per share for the current fiscal year.

In related news, Vice Chairman Sammy Aaron sold 71,766 shares of G-III Apparel Group stock in a transaction on Friday, April 12th. The shares were sold at an average price of $41.33, for a total transaction of $2,966,088.78. Following the sale, the insider now directly owns 434,969 shares in the company, valued at approximately $17,977,268.77. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Laura H. Pomerantz sold 821 shares of G-III Apparel Group stock in a transaction on Wednesday, April 3rd. The stock was sold at an average price of $40.43, for a total transaction of $33,193.03. Following the sale, the director now owns 39,682 shares in the company, valued at $1,604,343.26. The disclosure for this sale can be found here. Insiders sold a total of 74,692 shares of company stock worth $3,086,681 over the last 90 days. Company insiders own 8.60% of the company’s stock.

A number of large investors have recently made changes to their positions in the stock. GYL Financial Synergies LLC purchased a new stake in shares of G-III Apparel Group in the first quarter valued at about $1,830,000. Nordea Investment Management AB boosted its holdings in shares of G-III Apparel Group by 3.3% in the first quarter. Nordea Investment Management AB now owns 82,300 shares of the textile maker’s stock valued at $3,289,000 after acquiring an additional 2,600 shares in the last quarter. BlueCrest Capital Management Ltd purchased a new stake in shares of G-III Apparel Group in the first quarter valued at about $578,000. Zebra Capital Management LLC purchased a new stake in shares of G-III Apparel Group in the first quarter valued at about $501,000. Finally, SEI Investments Co boosted its holdings in shares of G-III Apparel Group by 15.9% in the first quarter. SEI Investments Co now owns 173,876 shares of the textile maker’s stock valued at $6,946,000 after acquiring an additional 23,821 shares in the last quarter.

G-III Apparel Group Company Profile

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.

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