The Situation
G-III Apparel Group Ltd (NASDAQ: GIII) shares – an American clothing company that designs, manufactures, and markets apparel in the US and internationally with a portfolio including Calvin Klein, Tommy Hilfiger, Guess?, Kenneth Cole, Levi's, and more – plunged on Thursday after missing earnings expectations. As of 12:00 PM ET, GIII shares dropped by 41.99%.
The Explanation
G-III officially went public in December 1989 and reached its all-time high at $72.23 on July 1, 2015, before dropping to $12.49 as of press time. The stock is down a whopping 55.57% year-to-date.
The company reported a Q3 non-GAAP income of $1.35, below its initial guidance of $1.80 to $1.90. This was also lower compared to the $2.18 recorded in the same period last year.
The company also lowered its guidance for fiscal 2023, with its net income expectation of $147 million to $152 million compared to its previous guidance of $182 million to $187 million. G-III also lowered its non-GAAP guidance from $177 million to $182 million to just $142 million to $147 million.
See the $GIII chart performance here.
The Effect
G-III stock plunged due to its massive adjustments in guidance for fiscal 2023. The investors' reaction happened despite the company reporting a growth in net sales at $1.08 billion, which was above its $1.07 billion guidance and a 6% growth from the year before.
Since investors can't know for sure if the company will hit its next expectations, it is more important to focus on G-III's business.
See full $GIII flow at: https://unusualwhales.com/stock/GIII/flow-overview
