G-III Apparel Group, Ltd. GIII is likely to report a top-line decline from the respective year-ago quarter’s reported figure in its first-quarter fiscal 2024 resultsresults on Jun 6, before the market open. The Zacks Consensus Estimate for quarterly revenues is pegged at $561 million, indicating an 18.7% increase from the year-ago fiscal quarter’s tally.
The consensus mark for earnings in the fiscal first quarter currently stands at a loss of 9 cents per share, which compares unfavorably with the year-ago fiscal quarter’s earnings of 72 cents per share. The consensus estimate for the same has been stable in the past 30 days.
G-III Apparel’s performance in the trailing four quarters reflects an average negative earnings surprise of 7.2%.
Key Factors to Note
G-III Apparel’s quarterly performance is quite likely to have been hurt by a tough operating landscape, including inflationary pressures on consumers and increased costs in areas like warehousing and supply chain. This coupled with any deleverage in SG&A expenses is likely to have hurt G-III Apparel’s earnings results in the to-be-reported fiscal quarter.
On its last earnings call, the company had envisioned an adjusted loss per share of 5-15 cents for the fiscal first quarter versus 72 cents earned in the year-earlier quarter. Management had cited that the first quarter is likely to have witnessed tough year-over-year comparisons and significant declines in the athleisure and jeans category owing to the rebalancing of the same on consumer demand.
On the flip side, we note that the company remains focused on initiatives such as building its own brands, acquiring new businesses, developing long-term licenses and enhancing its private-label business. Management has been focused on enhancing digital growth via investments in e-commerce sites and logistics capabilities. GIII is quite optimistic about its five global power brands, including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. These tailwinds are likely to have provided some cushion to the quarterly performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for G-III Apparel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
G-III Apparel Group, LTD. Price and EPS Surprise
G-III Apparel Group, LTD. price-eps-surprise | G-III Apparel Group, LTD. Quote
G-III Apparel has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings:
Skechers SKX currently has an Earnings ESP of +4.95% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a bottom-line decline when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 51 cents suggests a decline of 12.1% from the year-ago quarter.
Skechers’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $1.89 billion, which indicates a rise of 1.4% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Campbell Soup CPB currently has an Earnings ESP of +0.58% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for Campbell’s quarterly revenues is pegged at $2.22 billion, which suggests an increase of 4.2% from the figure reported in the prior-year quarter.
The consensus mark for CPB’s quarterly earnings has been unchanged in the past 30 days at 65 cents per share. The consensus estimate for the same suggests a 7.1% decline from the year-ago quarter’s reported number.
Carnival Corp. CCL currently has an Earnings ESP of +2.36% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for CCL’s quarterly revenues is pegged at $4.8 billion, which suggests a rise of 100% from the figure reported in the prior-year quarter.
The consensus mark for Carnival’s earnings has been unchanged in the past 30 days at a loss of 34 cents per share. The consensus estimate for the same indicates a decline from a loss of $1.64 per share reported in the year-ago quarter.
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