2010-01-25 08:25:11
From The Associated Press, January 25, 2010 - 08:35 AM
Analyst upgrades G-III Apparel Group partly on stabilizing Wilsons Outlet business
NEW YORK (AP) - With business at its Wilsons Outlet leather stores stabilizing and likely growth in its sports clothing and dresses, G-III Apparel Group may see an 8 percent operating margin over the next three years, an analyst said Monday as he upgraded the apparel maker.
"The company has a significant opportunity to grow key product lines (sportswear, dresses) and to post modest improvement within the Wilsons Outlet business," Edward Yruma of KeyBanc Capital Markets wrote in a client note. These actions make an 8 percent or more operating margin "reasonable" in the medium-term, he explained.
In December G-III reported a 12 percent increase in its third-quarter profit partly on demand for its dresses and sportswear.
Company shares soared throughout 2009, but have slipped nearly 19 percent since the beginning of the year.
Yruma boosted G-III Apparel Group Inc. to "Buy" from "Hold" and provided a price target of $22 on its appealing stock price.
The analyst predicts the company, based in New York, will probably make an acquisition within the next year, which could also help its performance.
"The company has proven generally adept at acquiring businesses and could do a deal that could drive up to $200 million to $250 million in incremental revenue," Yruma said.
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designs, manufactures, imports, and markets a range of outerwear, sportswear apparel, and accessories to retailers primarily in the United States (z)
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