- Barclays Analyst Paul Kearney has repeated a balance assessment on the shares of G-III Garment Group Ltd GIII and reduced the price target from $22 to $18.
- The firms Second quarter EPS missed $0.39 the analyst consensus of $0.47.
- The retailer became the sole owner of the clothing and accessories brand Karl Langerfeld by acquiring the remaining 81% of the shares for €200 million.
- Aside from the addition of the Karl Langerfeld brand in the 2H results, the analyst sees the potential for organic sales and margin pressure from an increasingly promotional retail environment.
- While GIII doesn’t think it needs to pump into the back half, Kearney sees risks as consumers become increasingly price-sensitive.
- Price promotion: GIII shares are trading up 3.61% at $18.65 on the last check Friday.
