What Happened?

Shares of fashion conglomerate G-III (NASDAQ:GIII) jumped 6.8% in the morning session after the company reported impressive third-quarter results that exceeded analysts' operating profit expectations. Its gross margin also narrowly outperformed Wall Street's estimates. Revenue was in line, and the company reconfirmed its full-year revenue guidance, signaling that management is staying on track. Even better, the company increased its earnings forecast for the year. Overall, this was a strong quarter.

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What The Market Is Telling Us

G-III’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock gained 23.8% on the news that the company reported strong second-quarter results. G-III blew past analysts' EBITDA and EPS expectations. On the other hand, its revenue guidance for the next quarter was underwhelming, and its revenue fell short of Wall Street's estimates. Zooming out, we think this was a mixed quarter featuring some areas of strength but also some blemishes.

G-III is up 3.7% since the beginning of the year, and at $34.79 per share, it is trading close to its 52-week high of $35.41 from December 2023. Investors who bought $1,000 worth of G-III’s shares 5 years ago would now be looking at an investment worth $1,166.

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