What Happened?
Shares of fashion conglomerate G-III (NASDAQ: GIII) fell 18.7% in the afternoon session after the company reported underwhelming first quarter 2025 results: its EPS guidance for next quarter missed analysts' estimates. Sales dropped by 4%, with the company citing supply chain disruptions and timing issues in several programs that pushed volume into the back half of the year.
On the other hand, G-III blew past analysts' EPS expectations, and its full-year revenue guidance slightly exceeded Wall Street's estimates. Still, this quarter was weak.
The shares closed the day at $22.51, down 18.6% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy G-III? Access our full analysis report here, it’s free.
What The Market Is Telling Us
G-III’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for G-III and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 23.8% on the news that the company reported second-quarter earnings 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 down 28.5% since the beginning of the year, and at $22.90 per share, it is trading 36.6% below its 52-week high of $36.10 from December 2024. Investors who bought $1,000 worth of G-III’s shares 5 years ago would now be looking at an investment worth $1,271.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
