Victor Herrero Of G-III Apparel Group Shows Optimism, Buys $109K In Stock

A significant insider buy by Victor Herrero, Board Member at G-III Apparel Group GIII, was executed on June 25, and reported in the recent SEC filing.

What Happened: Herrero's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 5,000 shares of G-III Apparel Group. The total transaction value is $109,750.

G-III Apparel Group's shares are actively trading at $21.95, experiencing a up of 0.92% during Thursday's morning session.

All You Need to Know About G-III Apparel Group

G-III Apparel Group Ltd is a textile company. It makes a wide range of apparel, footwear, and accessories that it sells under its own brands, licensed brands, and private-label brands. G-III has a substantial portfolio for licensed and proprietary brands, anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. The company has two reportable operations: Wholesale Operations and Retail Operations. The Wholesale operations segment includes sales of products under brands licensed by from third parties, as well as sales of products under its own brands and private label brands. The retail operations segment consists of Wilsons Leather, G.H. Bass, and DKNY retail stores. It derives majority of its revenues from Wholesale operations.

A Deep Dive into G-III Apparel Group's Financials

Decline in Revenue: Over the 3 months period, G-III Apparel Group faced challenges, resulting in a decline of approximately -4.29% in revenue growth as of 30 April, 2025. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 42.24%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): G-III Apparel Group's EPS reflects a decline, falling below the industry average with a current EPS of 0.18.

Debt Management: G-III Apparel Group's debt-to-equity ratio is below the industry average at 0.17, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 5.12 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.32 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 3.11, G-III Apparel Group's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of G-III Apparel Group's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.