G-III Apparel Group (GIII) Could Be 13% Undervalued As Marc Jacobs China Deal Lifts Sentiment

G-III Apparel Group (GIII) is back in focus after partnering with WHP Global and I.T Group to expand Marc Jacobs across Greater China, along with a recent earnings beat that has lifted investor sentiment.

Recent momentum in G-III Apparel Group has been mixed, with an 11.65% 1 month share price return contrasting with a 16.84% decline over the past 3 months. At the same time, the 14.30% 1 year total shareholder return points to improving sentiment as investors weigh the Marc Jacobs expansion and the recent earnings beat.

Scan beyond G-III Apparel Group and see how other retailers and consumer brands are lining up for their own potential rerating with the 18 high quality undiscovered gems.

The question now is whether G-III Apparel Group’s recent re rating reflects a healthier earnings engine or investors crowding into a Marc Jacobs story that is still being priced into the current valuation.

Most Popular Narrative: 13% Undervalued

Against a last close of $30.28, the most followed narrative pegs G-III Apparel Group’s fair value at $34.75. This frames the recent rerating as still leaving upside on the table based on its shifting brand mix and earnings profile.

The main factor that needs to go right is that G-III Apparel Group successfully replaces the remaining Calvin Klein and Tommy Hilfiger revenues with owned brands and direct-to-consumer growth, while maintaining recent gross margin gains and cost savings.

The current valuation implies that the market is still discounting G-III Apparel Group for revenue pressure from expiring licenses, even as guidance for non-GAAP EPS and adjusted EBITDA has been raised, and this narrative views the stock as undervalued with a positive outlook.

See why 3 investors see G-III Apparel Group as 13% undervalued.

Result: Fair Value of $34.75 (UNDERVALUED)

Still, the loss of Calvin Klein and Tommy Hilfiger licenses, along with pressure in weaker European markets, could easily undermine the G-III Apparel Group rerating story.

Find out about the key risks to this G-III Apparel Group narrative.

Another View On G-III Apparel Group’s Valuation

Analysts looking past the headline price target point to the Simply Wall St DCF output, which estimates fair value at $23.81 for G-III Apparel Group compared with the current $30.28 share price. On that math, the stock screens as overvalued. So which valuation do you trust when the numbers disagree?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out G-III Apparel Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 29 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed views on G-III Apparel Group so far. Use the same data sources, check the risks, weigh the upside and decide if the trade-off fits your playbook with 1 key reward and 2 important warning signs.

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