G-III Apparel Doing Great, Tariff Headwind Is Priced In

Shareholders Unite
Investing Group Leader
(18min)

Summary

  • G-III Apparel faces a $135M tariff headwind, but its diversified sourcing, pricing power, and operational strategies should mitigate much of the impact.
  • Core-owned brands like Donna Karan, DKNY, and Karl Lagerfeld are delivering strong growth, offsetting losses from expiring Calvin Klein and Tommy Hilfiger licenses.
  • Despite macro and tariff uncertainties, G-III's financials remain solid, with strong cash generation, share buybacks, and a low valuation multiple.
  • I see GIII shares as undervalued, with most tariff risk priced in; buying here offers a significant upside if the tariff environment improves.
  • Looking for more investing ideas like this one? Get them exclusively at SHU Growth Portfolio. Learn More »
A rail of clothes in a second hand vintage charity shop

Nick David/DigitalVision via Getty Images

G-III Apparel Group, Ltd. (NASDAQ:GIII) operates a broad portfolio of over 30 owned and licensed brands like DKNY, Donna Karan, Karl Lagerfeld, Calvin Klein, Tommy Hilfiger (even if these two are coming to an end), Vilebrequin, Nautica, Halston, G.H. Bass, Levi's, and Champion.

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This article was written by

Shareholders Unite
20.16K Followers

Shareholders Unite is a retired academic with 30+ years of experience in the financial markets. He looks to find small companies with multi-bagger potential while mitigating risks through a portfolio approach.

He runs SHU Growth Portfolio where he offers wide coverage of several small companies with high growth possibilities. He has a buy and hold approach with tranche purchases of stocks of interest. The service features an illustrative portfolio to incorporate into your portfolio, buy alerts, weekend stock and market updates, and a chat room. Learn more

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GIII either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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