Market Overview

Cowen Turns Bullish On Calvin Klein, Tommy Hilfiger Parent Company G-III Apparel

Cowen Turns Bullish On Calvin Klein, Tommy Hilfiger Parent Company G-III Apparel

G-III Apparel Group, Ltd. (NASDAQ: GIII), the apparel company behind brands such as Calvin Klein, DKNY and Levi's, boasts "substantial earnings power" from its core business that investors should watch, according to Cowen.

The Analyst

Cowen's John Kernan upgraded G-III Apparel Group's stock rating from Market Perform to Outperform with a price target lifted from $34 to $49.

The Thesis

G-III's Calvin Klein and Tommy Hilfiger license business continues to outperform and totaled nearly $1.3 billion in fiscal 2018, which marks an increase of 23 percent from a year ago, Kernan said in the upgrade note. (See the analyst's track record here.)

G-III's long-term targets of $1.5 billion in CK and $1 billion in Tommy Hilfiger implies upside to consensus estimates into fiscal 2021 and can be attributed to strong demand from the key 18-24-year-old demographic group, the analyst said. 

G-III boasts four key levers which should help the company grow its EPS from an expected $2.13 in fiscal 2019 to $3.32 in fiscal 2021, at least $3.70 in fiscal 2022 and $5 in the long run, Kernan said:

  • Momentum and profitability in the Donna Karan brand, which is now available in 400 Macy's.
  • Improvements in the overall retail segment.
  • Core wholesale growth.
  • Interest expense as key drivers.

The Street's fiscal 2020 consensus estimate of $2.48 for G-III looks "too conservative," which makes the stock attractive at current levels, Kernan said. 

Price Action

Shares of G-II Apparel Group were up 5.43 percent at the time of publication Wednesday. 

Related Links:

Oxford, PVH: The Retailers In Fashion At B. Riley FBR

Argus: VF Corp. Shares Merit Higher Multiple, Hold 26% Upside Potential

Latest Ratings for GIII

Sep 2019MaintainsNeutral
Sep 2019MaintainsBuy
Sep 2019DowngradesBuyNeutral

View More Analyst Ratings for GIII
View the Latest Analyst Ratings

Posted-In: Apparel Apparel Companies Calvin Klein CowenAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (GIII)

View Comments and Join the Discussion!

Latest Ratings

FWONAFBN SecuritiesDowngrades
TRVBank of AmericaDowngrades
PSTGCross ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

German Inflation Rises Strongly Driven By Energy Costs

USD/CAD Forecast: BOC Puts Rosy Glasses And Send The Pair Plunging