Categories Analysis, Retail

G-III Apparel (GIII) expects momentum in casuals to continue for the near-term

For the first quarter of 2022, G-III expects net sales to increase 14% from the year-ago period to approx. $460 million

Shares of G-III Apparel Group Ltd. (NASDAQ: GIII) were up 6% on Friday. The stock has gained 45% since the beginning of the year. The company reported earnings results for the fourth quarter of 2021 a day ago, wherein earnings surpassed market estimates but revenue fell short of expectations.

G-III has seen strong growth in the casual category and expects this momentum to continue in the coming months even as demand for dressier apparel picks up. The company will continue to expand its offerings in casuals in order to take advantage of the opportunity it sees in this category.

Quarterly numbers

Net sales dropped 30% to $526.2 million in Q4 on a year-over-year basis. GAAP profits totaled $14.6 million, or $0.30 per share. The quarterly results included net losses from the Wilsons Leather and G.H. Bass store operations of $0.17 per share. Adjusted EPS amounted to $0.47.

Strength in casuals  

G-III continues to see strong performance within casuals and plans to focus its efforts on driving growth in this category. During the quarter, the company witnessed strong demand for athleisure across its brands as people working from home or spending time outdoors continue to opt for the category due to its comfort and appeal.

G-III has improved its assortment to take advantage of this demand trend and the company believes there is significant opportunity to grow athleisure for its power brands. G-III is seeing momentum in jeans and expects this category to drive growth and market share gains in 2022 and beyond. The company is also seeing a recovery in demand for dressier apparel.

G-III believes the active outdoor lifestyles of its customers will continue for the foreseeable future and expects this to benefit its outerwear and sportswear categories.

Digital strength

Like its peers, G-III witnessed strong growth in its ecommerce channel. The company’s digital sales penetration is currently approaching 40% compared to approx. 25% last year. G-III’s websites delivered strong results for its Donna Karan New York and Karl Lagerfeld Paris brands with comparable sales increases of around 40%. The company also witnessed strong ecommerce sales in China. G-III will continue to invest in improving its digital capabilities in order to drive market share gains.


For the first quarter of 2022, G-III expects net sales to increase 14% from the year-ago period to approx. $460 million. Excluding sales from the closed Wilsons and G.H. Bass stores, net sales growth would be around 19%. GAAP EPS is projected to be $0.05-0.15.

Click here to read the full transcript of G-III Apparel Q4 2021 earnings conference call

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

Most Popular

UAL Earnings: United Airlines Q4 revenue Jumps; net loss narrows

Aviation giant United Airlines Holdings, Inc. (NYSE: UAL) reported a narrower net loss for the fourth quarter of 2021 as the company's revenues more than doubled during the period. The

Microsoft (MSFT), Activision (ATVI), Take-Two (TTWO), Zynga (ZNGA): Get ready for a new era in gaming

Over the past two weeks, the gaming industry has witnessed some key developments, namely the Microsoft-Activision and Take-Two Interactive-Zynga deals. These are major transactions that could herald a new era

Bank of America reports mixed Q4 results

Bank of America (NYSE: BAC) reported fourth-quarter 2021 financial results before the regular market hours on Wednesday. The banking giant reported Q4 revenue of $22.17 million, up 10% year-over-year, but

Add Comment
Viewing Highlight