Yahoo Finance Interested In G-III Apparel Group, Ltd. (NASDAQ:GIII)? Here's What Its Recent Performance Looks Like
After reading G-III Apparel Group, Ltd.'s (NasdaqGS:GIII) most recent earnings announcement (31 July 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
See our latest analysis for G-III Apparel Group
Commentary On GIII's Past Performance
GIII's trailing twelve-month earnings (from 31 July 2019) of US$141m has jumped 40% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.2%, indicating the rate at which GIII is growing has accelerated. How has it been able to do this? Let's see if it is solely attributable to industry tailwinds, or if G-III Apparel Group has seen some company-specific growth.
In terms of returns from investment, G-III Apparel Group has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 6.9% is below the US Luxury industry of 6.9%, indicating G-III Apparel Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for G-III Apparel Group’s debt level, has declined over the past 3 years from 16% to 12%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 11% to 47% over the past 5 years.
What does this mean?
Though G-III Apparel Group's past data is helpful, it is only one aspect of my investment thesis. While G-III Apparel Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research G-III Apparel Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for GIII’s future growth? Take a look at our free research report of analyst consensus for GIII’s outlook.
Financial Health: Are GIII’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 July 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
