Piper Jaffray Remains Bullish on G-III Apparel Group (GIII) Following 2Q EPS Beat

Piper Jaffray reiterated an Overweight rating and $86.00 price target on G-III Apparel (NASDAQ: GIII) following the company's 2Q16 earnings results. EPS of $0.27 came in above Street's estimate of $0.20). Sales came in at $474M (up 12% Y/Y), above consensus of $470M. The company issued Q3 guidance for sales and EPS of $920M and $1.78- $1.83 vs. Street's $911M and $1.82. GIII raised its FY16 EPS guidance from $2.66-$2.76 to $2.78-$2.88.

Analyst Erinn Murphy commented, "We are reiterating our OW rating following another beat & raise from GIII in which Q2 EPS of $0.27 came in above our estimate of $0.21 (Street: $0.20). Sales came in at $474M (up 12% Y/Y), above our estimate of $470M. While the company beat consensus by $0.07, the FY16 EPS range was raised by $0.12--suggesting further growth opportunities in 2H. To wit, EPS for FY16 is now forecasted in the range of $2.78-$2.88--up from $2.66-$2.76, prior. More importantly, revenue guidance for Q3 now implies low-teens growth (vs. our current low-double digit growth rate) and Q3's EPS incorporated the Street estimate. We would be buyers of GIII and will revisit our model and price target following the 8:30 ET conference call. We are eager to hear more about how the outerwear orderbook is trending, the turnaround traction at GH Bass and plans for Karl Lagerfeld in 2016."

For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.

Shares of G-III Apparel closed at $66.91 yesterday.

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