KeyBanc maintains G-III Apparel stock with $40 target

Friday, KeyBanc Capital Markets reiterated its Overweight rating on G-III Apparel Group Ltd (NASDAQ:GIII), maintaining a $40.00 price target. The firm’s analyst, Ashley Owens, noted G-III Apparel’s fourth-quarter revenue reached $839.5 billion, marking a 9.8% increase year-over-year, with adjusted earnings per share (EPS) at $1.27. Owens highlighted the company’s gross margin expansion of approximately 263 basis points, attributing the improvement to a higher contribution from owned brands. According to InvestingPro data, the company maintains a strong gross margin of 40.82% and trades at an attractive P/E ratio of 6.03, suggesting it may be undervalued compared to peers.

G-III Apparel’s performance was bolstered by the robust performance of its key owned brands, which helped mitigate the challenges arising from transitions in licenses with PVH Corp (NYSE:PVH). The analyst anticipates these brands will continue to grow at a double-digit percentage rate in the fiscal year 2025. Owens expressed confidence in the company’s strategy and its ability to drive further growth and opportunities throughout the current year, which is expected to lead to additional margin expansion and increased earnings power. The company’s financial health score of "GOOD" from InvestingPro supports this positive outlook, with strong metrics including a 14% cash return on invested capital.

In her commentary, Owens praised G-III Apparel for its ability to outperform in the quarter despite facing a difficult macroeconomic environment. The company’s focus on owned brands and the execution of its business strategy were key factors contributing to its success. Owens reaffirmed confidence in the company’s direction, citing the strength and momentum of G-III Apparel’s go-forward business. With annual revenue of $3.18 billion and a healthy revenue growth of 2.66%, the company demonstrates resilient performance metrics. For deeper insights into G-III Apparel’s valuation and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

The analyst’s endorsement comes after G-III Apparel reported continued strength within its portfolio of owned brands. This success is anticipated to contribute to the company’s growth trajectory and financial performance moving forward. KeyBanc’s reiteration of the Overweight rating reflects the firm’s positive outlook on G-III Apparel’s potential for margin expansion and earnings growth in the face of macroeconomic challenges.

In other recent news, G-III Apparel Group Ltd reported strong financial results for the fourth quarter of 2025, surpassing earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $1.27, exceeding the expected $0.96, and reported revenue of $839.5 million, which was above the anticipated $808.59 million. The company also announced a 10% year-over-year increase in revenue for the quarter and a 2.7% rise in full-year net sales, totaling $3.18 billion. G-III Apparel launched four new brands and expanded its licensing agreements, which contributed to its robust performance. For fiscal 2026, the company projects a slight revenue decline to $3.14 billion but expects stable non-GAAP EPS between $4.15 and $4.25. Analysts have noted the company’s strategic focus on owned brands, such as DKNY and Donna Karan, as a driving force behind its growth. Additionally, G-III Apparel plans to mitigate potential impacts from China tariffs. These developments reflect the company’s ongoing efforts to transform and deliver long-term growth.

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