1Q27 Earnings Hit the Marc, Raising Price Target to $40

研报英文原文证据摘录

1Q27 Earnings Hit the Marc, Raising Price Target to $40

Investment Thesis

We expect G-III Apparel Group, Ltd. to generate ~$2.7 billion in revenues in FY27. While the Calvin Klein and Tommy Hilfiger license

takebacks and brand losses announced in 2022 are material to the company (a loss of ~$1 billion of revenues), we believe the

company will continue to benefit from the management team’s experience and long-term perspective, anchored by Chairman

and CEO Morris Goldfarb. We believe this team has deep merchant experience within the apparel industry and has been makingCONSUMER solid progress with its business transition. It plans to continue developing its owned and licensed brand opportunities, especially

in the DKNY brand ($650 million in sales last year) and in the Karl Lagerfeld brand ($630 million in sales LY). We expect material

progress over the next 12-18 months on the company's transition as this progress takes further hold and expect the shares to

reflect the traction.RETAIL

Upcoming Catalysts Price Performance

G-III will be reporting earnings in September. Traction on further developing its owned $38

and licensed brand opportunities, especially in the DKNY brand ($650 million in sales $36EQUITY $34 last year) and in the Karl Lagerfeld brand ($630 million LY), should be catalysts. The $32

rollout and success of the Converse apparel global license along with the launch of $30

BCBG, could be catalysts. We also believe more detail on the plans of the Marc Jacobs $28

JV can be a catalyst. $26

$24

$22

$20RESEARCH Base Case Assumptions: $40 Price Target $18

For FY27, we are forecasting revenues of $2.71 billion, -8.2% y/y, with gross margin Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 expansion of ~410 basis points.