By Todd Salamone, Schaeffer's Investment Research

In early December, G-III Apparel Group (GIII) reported quarterly earnings of $2.16 per share as year-over-year revenues rose 13.3%.

Earnings topped estimates of $2.14 per share, after two quarters in which G-III missed estimates. Additionally, the company announced an agreement to open Calvin Klein Women’s Performance stores in the U.S., China and other countries throughout the world.

G-III shares responded favorably to the earnings and licensing news, which could be the catalysts for a turnaround play in the stock in 2012, following a dismal performance in the last seven months of 2011.

From a technical perspective, we view the November/December low at the 80-month moving average as a potential pivot point, as the trendline supported the stock in 2002-2003 and again in 2004-2005.

The latest news also pushed the shares back above the $22.50 area, which is half G-III’s all-time high set in April 2011 and such levels often provide strong support.

With G-III’s short interest near all-time highs after a pullback to long-term support and favorable catalysts heading into 2012, G-III is an attractive speculative play.

A short-covering rally in 2012 could rejuvenate G-III shares, which are still up by more than 500% over the past ten years.