Piper Jaffray: GIII Represents A Compelling Value

Piper Jaffray reports this morning that recent comments from PVH management suggests the Calvin Klein dress, outerwear and sportswear business remains strong with a 25% y/y gain in royalties.

“Additionally, several major retailers have reported an acceleration in traffic and conversion, particularly for seasonal categories,” Piper Jaffray writes. “We believe strong sell-in of outerwear merchandise combined with the strong performance of its Calvin Klein licensed categories will bode well for Q3 performance and Q4 guide on 12/8/2010.”

Given the stock trades at 9.6x our FY11 EPS est vs. 13.5x for the peer group, Piper Jaffray said that it continues to believe G-III Apparel Group, LTD. (NASDAQ: GIII) represents a compelling value.

G-III Apparel Group closed Monday at $30.58.