G-III Apparel Group Insights: Return On Capital Employed

Looking at Q1, G-III Apparel Group GIII earned $46.82 million, a 70.53% increase from the preceding quarter. G-III Apparel Group's sales decreased to $519.91 million, a 1.2% change since Q4. In Q4, G-III Apparel Group earned $27.46 million, whereas sales reached $526.24 million.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in G-III Apparel Group's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, G-III Apparel Group posted an ROCE of 0.03%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In G-III Apparel Group's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q1 Earnings Insight

G-III Apparel Group reported Q1 earnings per share at $0.53/share, which beat analyst predictions of $0.15/share.