After Macy’s Inc. posted a steep drop in second quarter earnings this past Wednesday, shares of G-III Apparel Group Inc. lost 7.5 percent to close at $65.77 as investors were concerned over the vendor’s sales concentration at the department store.

But a stock upgrade from one analyst and a deeper look into the company from another research analyst pushed G-III’s stock back up. During trading today, the stock has a gain of 2 percent to $69.27. G-III’s 52-week low is $35.34 and its high is $73.93.

Following the earnings report, Brean Capital upgraded the stock to a “buy” from a “hold.” Wunderlich Securities Inc. analyst Eric Beder also has a “buy” rating on the stock with a $75 price target.

And in a detailed report on the company, Beder said Macy’s-driven “weakness” is a buying opportunity for G-III. Beder said the share price drop provided a “solid buying opportunity for investors ahead of what should be a solid [second quarter] and guide for G-III.”

Beder noted that although sales to Macy’s accounted for 18.7 percent of the total sales at G-III, it is down 260 basis points over the prior two years. “With G.H. Bass and the retail operations continuing to grow, we believe the percentage of sales to Macy’s will continue to decline,” Beder said adding that G-III’s Calvin Klein business “has been a key winner in the share grab with the shut-down of Jones New York for Fall; we believe this still remains a key positive for [the third quarter] and beyond.”

Beder said Macy’s remains focused on “key areas” that G-III supplies – such as dresses and active wear. “We estimate G-III is among the top dress players in Macy’s while Calvin Klein activewear remains a key resource,” Beder said. “While early, we think demand for outerwear remains strong. We believe the outerwear book remains solid and that the outerwear business is once again set for strong returns in [the second half], driven by fashion changes to more denim and a continued emphasis on this segment as a fashion driver.”

G-III has annual sales of $2.1 billion, and offers a number of brands including Andrew Marc, Marc New York, Bass, G.H. Bass, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks and G-III for Her, among others. The licensed brands include Calvin Klein, ck Calvin Klein, Guess, Kenneth Cole NY, Reaction Kenneth Cole, Cole Haan, Levi’s, Vince Camuto, Tommy Hilfiger, Jessica Simpson, Ivanka Trump, Jones New York and Ellen Tracy, among others.

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