Breaking Down G-III Apparel Group, Ltd. (GIII) Financial Health: Key Insights for Investors

Breaking Down G-III Apparel Group, Ltd. (GIII) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Apparel - Manufacturers | NASDAQ

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Understanding G-III Apparel Group, Ltd. (GIII) Revenue Streams

Revenue Analysis

The company reported total revenue of $2.78 billion for the fiscal year 2023, with a detailed breakdown of revenue streams as follows:

Revenue Source Amount ($) Percentage of Total Revenue
Wholesale Fashion 1,850,000,000 66.5%
Retail Operations 680,000,000 24.5%
Licensing 250,000,000 9%

Key revenue insights for the fiscal year 2023 include:

  • Year-over-year revenue growth rate of 3.2%
  • Wholesale segment remained the primary revenue driver
  • Retail operations showed steady performance

Geographic revenue distribution:

Region Revenue ($) Percentage
North America 2,150,000,000 77.3%
International Markets 630,000,000 22.7%

Notable revenue performance metrics:

  • E-commerce revenue reached $420 million
  • Licensing revenue increased by 5.1% compared to previous year
  • Wholesale segment maintained stable market position



A Deep Dive into G-III Apparel Group, Ltd. (GIII) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 40.2% 39.8%
Operating Profit Margin 5.6% 4.9%
Net Profit Margin 3.7% 3.2%

Key profitability observations include:

  • Gross profit increased from $579.4 million in 2022 to $612.3 million in 2023
  • Operating income rose from $71.2 million to $85.5 million
  • Net income improved from $46.3 million to $56.7 million
Efficiency Metric 2023 Performance
Return on Equity (ROE) 12.4%
Return on Assets (ROA) 6.8%

Industry comparative analysis demonstrates competitive positioning with margins slightly above apparel sector median benchmarks.




Debt vs. Equity: How G-III Apparel Group, Ltd. (GIII) Finances Its Growth

Debt vs. Equity Structure Analysis

As of fiscal year 2023, the company's financial structure reveals critical insights into its debt and equity composition.

Financial Metric Amount ($)
Total Long-Term Debt $305.4 million
Total Short-Term Debt $187.6 million
Total Shareholders' Equity $456.2 million
Debt-to-Equity Ratio 1.08

Key debt financing characteristics include:

  • Credit facility of $500 million
  • Weighted average interest rate of 5.75%
  • Debt maturity ranging between 2025-2028

Debt financing breakdown:

Debt Type Percentage
Revolving Credit 65%
Term Loans 35%



Assessing G-III Apparel Group, Ltd. (GIII) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 1.32 2023
Quick Ratio 0.78 2023
Cash Ratio 0.24 2023

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total Working Capital: $124.5 million
  • Year-over-Year Working Capital Change: -7.2%
  • Inventory Turnover Ratio: 3.6x

Cash Flow Statement Overview

Cash Flow Category Amount Year
Operating Cash Flow $86.3 million 2023
Investing Cash Flow -$42.1 million 2023
Financing Cash Flow -$33.7 million 2023

Liquidity Risk Indicators

  • Short-Term Debt Coverage: 1.45x
  • Days Sales Outstanding: 52 days
  • Cash Conversion Cycle: 45 days



Is G-III Apparel Group, Ltd. (GIII) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q4 2023, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.12
Enterprise Value/EBITDA 6.73
Current Stock Price $23.67

Stock price performance over the past 12 months demonstrates significant volatility:

  • 52-week high: $36.45
  • 52-week low: $19.23
  • Price change in last 12 months: -35.2%

Analyst consensus breakdown:

Recommendation Number of Analysts Percentage
Buy 4 33.3%
Hold 6 50%
Sell 2 16.7%

Dividend metrics:

  • Current Dividend Yield: 2.1%
  • Payout Ratio: 28.5%



Key Risks Facing G-III Apparel Group, Ltd. (GIII)

Risk Factors Impacting Financial Performance

The company faces multiple critical risk dimensions that could significantly influence its financial trajectory:

Operational Risks

Risk Category Potential Impact Probability
Supply Chain Disruption Revenue Reduction Medium
Manufacturing Costs Margin Compression High
Inventory Management Working Capital Challenges High

Market Risks

  • Consumer spending volatility
  • Competitive retail landscape
  • E-commerce transformation challenges
  • Seasonal demand fluctuations

Financial Risks

Key financial risk indicators include:

  • Current debt-to-equity ratio: 1.42
  • Interest coverage ratio: 3.7x
  • Working capital: $124.5 million
  • Cash reserve volatility: ±15% quarterly variation

Regulatory Compliance Risks

Regulatory Domain Potential Financial Impact
International Trade Regulations $3.2 million potential compliance costs
Labor Standards $1.7 million potential legal exposure



Future Growth Prospects for G-III Apparel Group, Ltd. (GIII)

Growth Opportunities

The company's growth strategy focuses on several key drivers and market opportunities:

  • Revenue Potential: Projected annual revenue growth of 4.5% to 6.2% in the next three years
  • Expansion into new retail channels and e-commerce platforms
  • Strategic brand licensing and partnership developments
Growth Metric 2024 Projection 2025 Estimate
Revenue Growth $2.87 billion $3.02 billion
E-commerce Expansion 18.5% market share 22.3% market share
International Markets 12.7% revenue contribution 15.4% revenue contribution

Key strategic initiatives include:

  • Diversifying product portfolio across multiple fashion segments
  • Investing in digital transformation technologies
  • Exploring potential strategic acquisitions in complementary market segments

Competitive advantages supporting growth trajectory:

  • Established brand relationships
  • Robust supply chain infrastructure
  • Flexible manufacturing capabilities

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