– Manufacturer and marketer of branded apparel including DKNY, Calvin Klein, and Tommy Hilfiger.
– Sells through leading retailers (such as $M, $TJX) as well as own stores.
– Priced for bankruptcy despite healthy balance sheet, long-term growth track record, and 26% ROTE.
– Relative valuation discount to comps is unwarranted.
– Trades under 6x PE vs 17x pre-covid.
– At 15x earnings and $4.2 LTM EPS would be $63/stock.
– The recent acquisition of brands supports this valuation.
– Comp group ($COLM, $KTB, $PVH and $RL) sit at 9.5x PE and 6.5x EBITDA.
Exp. gain: +150% to $63/share.
Full GIII write-up (free guest account required):