G-III Apparel Group Ltd (GIII)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.82% | 40.08% | 34.13% | 35.72% | 36.22% |
| Operating profit margin | 9.21% | 9.15% | 8.31% | 11.24% | 4.03% |
| Pretax margin | 8.48% | 7.77% | -4.28% | 9.79% | 1.74% |
| Net profit margin | 6.09% | 5.69% | -4.16% | 7.25% | 1.15% |
G-III Apparel Group Ltd's profitability ratios have shown some fluctuations over the past five years based on the provided data. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has generally improved from 2023 to 2025, increasing from 34.13% to 40.82%. This trend suggests better control over production and distribution costs.
The operating profit margin, representing the percentage of revenue left after deducting operating expenses, saw a significant rise from 2021 to 2022, jumping from 4.03% to 11.24%. However, the margin remained relatively stable in the subsequent years, indicating efficient management of day-to-day business operations.
The pretax margin, which demonstrates the company's ability to generate profits before accounting for taxes, experienced some volatility. After a significant increase in 2022, the margin dropped into negative territory in 2023 but recovered in 2024 and 2025. This fluctuation may be attributed to various factors impacting the company's pre-tax profitability.
Lastly, the net profit margin, revealing the percentage of revenue that translates into bottom-line profit after all expenses including taxes, showcased improvement from 2021 to 2022, climbing from 1.15% to 7.25%. Despite a negative net profit margin in 2023, the company managed to rebound and achieve a positive margin in the following years, reaching 6.09% in 2025. This trend suggests the company's ability to enhance its profitability and efficiency in converting revenue into net income over the years.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.80% | 10.57% | 9.88% | 11.34% | 2.20% |
| Return on assets (ROA) | 7.79% | 6.57% | -4.95% | 7.31% | 0.63% |
| Return on total capital | 17.19% | 18.07% | -5.89% | 18.08% | 2.20% |
| Return on equity (ROE) | 11.53% | 11.36% | -9.70% | 13.20% | 1.76% |
Based on the profitability ratios of G-III Apparel Group Ltd over the past five years, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown an increasing trend over the period, starting at 2.20% in January 2021 and reaching 11.80% in January 2025. This indicates that the company has been able to generate more profit from its operations relative to its total assets.
2. Return on Assets (ROA):
- The ROA fluctuated over the years, with a significant negative figure of -4.95% in January 2023. However, it improved in the subsequent years, reaching 7.79% by January 2025. This ratio measures the company's ability to generate profit from its assets.
3. Return on Total Capital:
- The Return on Total Capital also had significant variations, with a negative figure of -5.89% in January 2023. However, it rebounded strongly to 17.19% by January 2025. This ratio reflects the company's efficiency in generating returns from all invested capital.
4. Return on Equity (ROE):
- The ROE experienced fluctuations as well, with a notable negative figure of -9.70% in January 2023. Despite this, the ratio improved over the years, reaching 11.53% by January 2025. ROE indicates how well the company is utilizing shareholders' equity to generate profits.
In conclusion, while there have been fluctuations in some profitability ratios, overall, G-III Apparel Group Ltd has shown an improvement in its ability to generate returns from assets, total capital, and equity over the past five years. This suggests that the company has been making progress in maximizing its profitability and efficiency in utilizing resources.