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anilbolukbas G-III Apparel Group ( NASDAQ: GIII ) is a fashion brand conglomerate. The company owns brands like Karl Lagerfeld, DKNY, Donna Karan, and Vilebrequin. It also licenses brands like Calvin Klein and Tommy Hilfiger.

This article analyses the company's 1Q25 results and earnings call . The company did not meet consensus revenues and posted a flat top line. This may have led to the 15% stock price decrease after the release.



However, under the hood, the results were very good for the company's proprietary brands, with revenues growing by 16% YoY. On the bottom line, the company met expectations and maintained margins despite the headwinds in the licensed business. The margins dynamic is a positive signal when forecasting the business margins after losing the CK and TH licenses.

G-III also announced an equity investment in a brand manager and wholesaler focusing on the Iberian Peninsula and India. I started covering G-III in March 2024 with a Buy rating. My rating was based on the company's good, long-standing, and equity-invested management, low leverage, and the potential of the company's brands.

Despite the significant uncertainty respecting the margins of the company's proprietary brands, the stock price implied relatively low margins are needed to obtain an adequate return. As we will discuss, the company's fundamentals have improved, whereas its price has been flat. For that reason, I maintain my Buy rating on G-III.

Good results under the hood G-III's 1Q25 result.

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