A month has gone by since the last earnings report for G-III Apparel Group (GIII). Shares have lost about 6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is G-III Apparel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. G-III Apparel’s Q3 Earnings Beat, FY22 View HigherG-III Apparel posted sturdy third-quarter fiscal 2022 results with both the top and the bottom line beating the Zacks Consensus Estimate and growing year over year. Results also exceeded management’s expectations.Q3 in DetailG-III Apparel delivered earnings per share of $2.16, beating the Zacks Consensus Estimate of $1.79. Also, the reported figure surged 67.4% from $1.29 a share delivered in the year-ago quarter. The bottom line outpaced the management’s guided range of $1.65-$1.75 per share for the quarter.Net sales jumped 22.8% year over year to $1,015.4 million and came above the Zacks Consensus Estimate of $1,011 million. The top-line outperformance can be attributed to sales growth at the Wholesale unit, offset by soft sales at the Retail division.G-III Apparel’s digital business has been robust for a while now. Compared to two years ago, sales on its partner sites rose more than 45% and above 60% on its sites. In China, digital sales were stronger than store sales, while Vilebrequin's digital sales also increased.A Sneak Peek Into MarginsGross profit increased 16.7% year over year to $347.5 million. However, gross margin of 34.2% contracted 180 basis points (bps) from the prior-year period’s reading. The year-ago period's gross margins included gains from the pandemic-related adjustments.SG&A expenses inched up 2.7% year over year to $182.4 million, mainly due to higher compensation expenses with respect to bonus accruals. G-III Apparel reported an operating income of $158.1 million, up 43.6% from the year-ago quarter’s number.Segmental PerformanceNet sales at the Wholesale segment were $1.01 billion, up from 783 million recorded in the year-earlier quarter. Also, the segment’s gross margin declined nearly 250 bps from the year-ago quarter’s level to 33%.Net sales at the Retail segment totaled $26 million, down from $58 million in the prior-year quarter due to the restructuring of its retail segment. Nonetheless, the segment’s gross margin grew sharply to 49.8% from 33.9% registered in the year-earlier quarter.Financial DetailsG-III Apparel ended the fiscal third quarter with cash and cash equivalents of $279.6 million and long-term debt of $517.5 million. Total stockholders’ equity was $1,486.2 million. Inventories declined 2.8% to $449 million at the end of the reported quarter. At the quarter-end, it had cash and availability under its credit agreement of more than $900 million.OutlookFor fiscal 2022, G-III Apparel projects net sales of $2.77 billion, up from the prior view of $2.70 billion. It forecasts net income between $180 million and $190 million compared with $155-$165 million estimated earlier.Management envisioned earnings per share of $3.65-$3.75, higher than $3.10-$3.20 guided previously.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 20.74% due to these changes.VGM ScoresAt this time, G-III Apparel has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, G-III Apparel has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First To New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research