Barclays Sees Risks From Price Sensitive Consumers For G-III Apparel

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  • Barclays analyst Paul Kearney has reiterated an Equal Weight rating on the shares of G-III Apparel Group Ltd GIII and reduced the price target from $22 to $18.
  • The company’s second-quarter EPS of $0.39 missed the analyst consensus of $0.47.
  • The retailer became the sole owner of clothing and accessories brand Karl Langerfeld brand by acquiring the remaining 81% stake for €200 million.
  • Excluding the addition of Karl Langerfeld brand into 2H results, the analyst sees the potential for organic sales and margin pressure from an increasingly promotional retail environment.
  • While GIII does not believe it needs to promote in the back half, Kearney sees risks should consumers become increasingly price sensitive.
  • Price Action: GIII shares are trading higher by 3.61% at $18.65 on the last check Friday.
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