GIII - G-III Apparel Group risks and rewards are at equilibrium - Barclays

Despite a solid earnings result that reflected strong sales and margins in early June, G-III Apparel Group’s (NASDAQ:GIII) risk reward dynamic is balanced as consumers curb apparel purchases, per Barclays. The bank’s analyst Paul Kearney indicated that the recently reported earnings and outlook for the full year are encouraging, with the “shift away from casualization” and return to work trends benefitting its more fashion-forward brands. This dynamic was highlighted in the acquisition of Karl Lagerfeld brands, which were a key driver of sales and online sales specifically. Still, Kearney advised that even a strong individual earnings result cannot obscure the broader industry trends that are a cause for caution on the stock. “A weakening consumer environment and the inventory bloat in retail channels add to the risks of reduced or canceled orders into the back half,” he wrote. “Additionally, the potential return to industry wide promotional levels may make continued

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G-III Apparel Group risks and rewards are at equilibrium - Barclays