G-III Apparel Group, Ltd. Reports Second Quarter Fiscal 2027 Results and Raises Earnings Guidance
- Second Quarter GAAP and Non-GAAP Net Income Per Diluted Share Exceed Guidance
- Net Income Per Diluted Share of $0.46 Compared to $0.25 Last Year
- Non-GAAP Net Income Per Diluted Share of $0.26 Compared to $0.25 Last Year
- Net Sales of $554.1 Million Compared to $613.3 Million Last Year
- Go-Forward Portfolio Sales Up High-Single Digits
- Raises GAAP and Non-GAAP Net Income Guidance for Fiscal 2027, Excluding Marc Jacobs
- Completes Marc Jacobs Acquisition; Targets $1 Billion in Long-Term Annual Revenue
New York, NY — G-III Apparel Group reported results for the second quarter of fiscal year 2027, ended July 31, 2026.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Our second quarter results reflect strong execution across the organization, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go-forward portfolio grew at a high-single digit rate during the quarter, reinforcing our confidence in the power of our brands and business model.”
Mr. Goldfarb continued, “Our strategic transformation has taken a meaningful step forward with the addition of Marc Jacobs. The acquisition significantly strengthens our portfolio and further enhances our position as a global fashion leader. I am extremely optimistic about the future of G-III and believe we have the brands, capabilities, and financial flexibility to capitalize on the opportunities ahead and create long-term value for our shareholders.”
Results of Operations
Second Quarter Fiscal 2027
Net sales for the second quarter ended July 31, 2026 decreased 10% to $554.1 million compared to $613.3 million in the prior year’s quarter.
Gross margin increased 440 basis points to 45.2% compared to 40.8% in the second quarter of last year. This improvement reflects price increases as well as the continued mix shift toward higher-margin owned brands.
Net income for the second quarter ended July 31, 2026 was $20.2 million, or $0.46 per diluted share, compared to $10.9 million, or $0.25 per diluted share, in the same period last year.
Non-GAAP net income per diluted share for the second quarter ended July 31, 2026 was $0.26 per diluted share, compared to $0.25 per diluted share, in the same period last year.
Balance Sheet as of Second Quarter Fiscal 2027
Cash and cash equivalents were $529.2 million compared to $301.8 million last year.
Inventories decreased 13% to $555.0 million this year compared to $639.8 million last year.
Capital return to shareholders of $12.2 million consisting of $7.9 million of share repurchases and $4.3 million in dividend payments.
Outlook
The Company today updated its outlook for the fiscal year ending January 31, 2027 and provided its outlook for the third quarter ending October 31, 2026. The Company’s updated guidance assumes that tariffs for the remainder of the year will approximate current rates.
The Company’s outlook does not include any impact related to the Marc Jacobs acquisition, and it expects to provide more specific guidance when it reports third quarter earnings. The Company believes the acquisition will be slightly dilutive in fiscal 2027.
As previously disclosed, the transaction is expected to be dilutive during the first 12 months after closing, with accretion expected thereafter.
Fiscal 2027
Net sales for fiscal 2027 are expected to be approximately $2.71 billion, which incorporates the loss of approximately $460 million of sales from Calvin Klein and Tommy Hilfiger products. This compares to net sales of $2.96 billion for fiscal 2026.
Net income is expected to be between $181.0 million and $185.0 million, or diluted earnings per share between $4.10 and $4.20. This compares to net income of $67.4 million, or $1.51 per diluted share for fiscal 2026.
Non-GAAP net income is expected to be between $97.0 million and $101.0 million, or diluted earnings per share between $2.20 and $2.30. This compares to non-GAAP net income of $116.2 million, or diluted earnings per share of $2.61 for fiscal 2026.
Adjusted EBITDA is expected to be between $174.0 million and $178.0 million compared to adjusted EBITDA of $192.4 million in fiscal 2026.
Net interest income is expected to be approximately $8.0 million for GAAP purposes and $5.0 million for non-GAAP purposes.
Tax rates are estimated to be approximately 25.2% for GAAP purposes and 32.2% for non-GAAP purposes.
Third Quarter Fiscal 2027
Net sales for the third quarter of fiscal 2027 are expected to be approximately $870.0 million. This compares to net sales of $988.6 million in last year’s third quarter.
Net income for the third quarter of fiscal 2027 is expected to be between $59.0 million and $64.0 million, or diluted earnings per share between $1.35 and $1.45. This compares to GAAP net income of $80.6 million, or $1.84 per diluted share, and non-GAAP net income of $83.4 million, or $1.90 per diluted share in last year’s third quarter.
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | ||||||||||||||||
| (Nasdaq: GIII) | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net sales | $ | 554,093 | $ | 613,266 | $ | 1,090,055 | $ | 1,196,875 | ||||||||
| Cost of goods sold | 303,712 | 362,795 | 491,928 | 699,860 | ||||||||||||
| Gross profit | 250,381 | 250,471 | 598,127 | 497,015 | ||||||||||||
| Selling, general and administrative expenses | 231,354 | 226,845 | 486,677 | 458,340 | ||||||||||||
| Depreciation and amortization | 8,195 | 7,326 | 15,383 | 13,899 | ||||||||||||
| Operating profit | 10,832 | 16,300 | 96,067 | 24,776 | ||||||||||||
| Other income (loss) | (2,708 | ) | (707 | ) | (3,510 | ) | 2,755 | |||||||||
| Interest and financing charges, net | 5,966 | 304 | 7,140 | (157 | ) | |||||||||||
| Income before income taxes | 14,090 | 15,897 | 99,697 | 27,374 | ||||||||||||
| Income tax expense (benefit) | (6,123 | ) | 4,958 | 12,950 | 8,676 | |||||||||||
| Net income | $ | 20,213 | $ | 10,939 | $ | 86,747 | $ | 18,698 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.48 | $ | 0.26 | $ | 2.05 | $ | 0.43 | ||||||||
| Diluted | $ | 0.46 | $ | 0.25 | $ | 1.95 | $ | 0.42 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 42,399 | 42,777 | 42,296 | 43,254 | ||||||||||||
| Diluted | 44,338 | 44,219 | 44,377 | 44,795 | ||||||||||||
| Selected Balance Sheet Data (in thousands): | As of July 31, | |||||
| 2026 | 2025 | |||||
| (Unaudited) | ||||||
| Cash and cash equivalents | $ | 529,190 | $ | 301,778 | ||
| Working capital | 984,231 | 812,675 | ||||
| Inventories | 555,024 | 639,756 | ||||
| Total assets | 2,751,847 | 2,690,981 | ||||
| Total debt | 7,835 | 15,481 | ||||
| Operating lease liabilities | 333,004 | 280,295 | ||||
| Total stockholders’ equity | 1,819,114 | 1,708,521 | ||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | ||||||||||||||
| RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT | ||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (In thousands, unaudited) | ||||||||||||||
| GAAP gross profit | $ | 250,381 | $ | 250,471 | $ | 598,127 | $ | 497,015 | ||||||
| Excluded from non-GAAP: | ||||||||||||||
| IEEPA tariff refund | (122 | ) | — | (102,803 | ) | — | ||||||||
| Non-GAAP gross profit, as defined | $ | 250,259 | $ | 250,471 | $ | 495,324 | $ | 497,015 | ||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| (Unaudited) | |||||||||||||
| GAAP gross profit percentage | 45.2 | % | 40.8 | % | 54.9 | % | 41.5 | % | |||||
| Excluded from non-GAAP: | |||||||||||||
| IEEPA tariff refund | — | — | (9.5 | ) | — | ||||||||
| Non-GAAP gross profit percentage, as defined | 45.2 | % | 40.8 | % | 45.4 | % | 41.5 | % | |||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP net income | $ | 20,213 | $ | 10,939 | $ | 86,747 | $ | 18,698 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| IEEPA tariff refund | (122 | ) | — | (102,803 | ) | — | ||||||||||
| Interest income on IEEPA tariff refund | (3,085 | ) | — | (3,085 | ) | — | ||||||||||
| Expenses related to Marc Jacobs acquisition | 4,032 | — | 7,432 | — | ||||||||||||
| One-time warehouse related severance expenses | — | 349 | — | 1,327 | ||||||||||||
| Income tax impact of non-GAAP adjustments | (211 | ) | (108 | ) | 23,796 | (420 | ) | |||||||||
| Tax benefit from release of valuation allowance | (9,334 | ) | — | (9,334 | ) | — | ||||||||||
| Non-GAAP net income, as defined | $ | 11,493 | $ | 11,180 | $ | 2,753 | $ | 19,605 | ||||||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF GAAP DILUTED NET INCOME PER SHARE TO NON-GAAP DILUTED NET INCOME PER SHARE | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 | ||||||||||||
| (Unaudited) | |||||||||||||||
| GAAP diluted net income per common share | $ | 0.46 | $ | 0.25 | $ | 1.95 | $ | 0.42 | |||||||
| Excluded from non-GAAP: | |||||||||||||||
| IEEPA tariff refund | — | — | (2.32 | ) | — | ||||||||||
| Interest income on IEEPA tariff refund | (0.07 | ) | — | (0.07 | ) | — | |||||||||
| Expenses related to Marc Jacobs acquisition | 0.09 | — | 0.17 | — | |||||||||||
| One-time warehouse related severance expenses | — | — | — | 0.03 | |||||||||||
| Income tax impact of non-GAAP adjustments | — | — | 0.54 | (0.01 | ) | ||||||||||
| Tax benefit from release of valuation allowance | (0.22 | ) | — | (0.21 | ) | — | |||||||||
| Non-GAAP diluted net income per common share, as defined | $ | 0.26 | $ | 0.25 | $ | 0.06 | $ | 0.44 | |||||||
r, or superior to, the financial information prepared and presented in accordance with GAAP.
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | |||||||||||||||
| (In thousands) | |||||||||||||||
| Forecasted Twelve | Actual Twelve | ||||||||||||||
| Three Months Ended | Months Ending | Months Ended | |||||||||||||
| July 31, 2026 | July 31, 2025 | January 31, 2027 | January 31, 2026 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net income | $ | 20,213 | $ | 10,939 | $ | 181,000 – 185,000 | $ | 67,353 | |||||||
| IEEPA tariff refund | (122 | ) | — | (102,803 | ) | — | |||||||||
| Expenses related to Marc Jacobs acquisition | 4,032 | — | 7,432 | — | |||||||||||
| Asset impairments | — | — | — | 48,565 | |||||||||||
| Strategic opportunity related professional fees | — | — | — | 2,282 | |||||||||||
| One-time warehouse related severance expenses | — | 349 | — | 1,327 | |||||||||||
| Depreciation and amortization | 8,195 | 7,326 | 34,900 | 29,016 | |||||||||||
| Interest and financing charges, net | (5,966 | ) | (304 | ) | (8,200 | ) | 508 | ||||||||
| Income tax expense (benefit) | (6,123 | ) | 4,958 | 61,671 | 43,316 | ||||||||||
| Adjusted EBITDA, as defined | $ | 20,229 | $ | 23,268 | $ | 174,000 – 178,000 | $ | 192,367 | |||||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME TO FORECASTED AND ACTUAL NON-GAAP NET INCOME | |||||||||||||||
| (In thousands) | |||||||||||||||
| Forecasted Three | Actual Three | Forecasted Twelve | Actual Twelve | ||||||||||||
| Months Ending | Months Ended | Months Ending | Months Ended | ||||||||||||
| October 31, 2026 | October 31, 2025 | January 31, 2027 | January 31, 2026 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net income | $ | 59,000 – 64,000 | $ | 80,593 | $ | 181,000 – 185,000 | $ | 67,353 | |||||||
| Excluded from non-GAAP: | |||||||||||||||
| IEEPA tariff refund | — | — | (102,803 | ) | — | ||||||||||
| Interest income on IEEPA tariff refund | — | — | (3,085 | ) | — | ||||||||||
| Expenses related to Marc Jacobs acquisition | — | — | 7,432 | — | |||||||||||
| Asset impairments | — | 1,607 | — | 48,565 | |||||||||||
| Strategic opportunity related professional fees | — | 2,365 | — | 2,282 | |||||||||||
| One-time warehouse related severance expenses | — | — | — | 1,327 | |||||||||||
| Income tax impact of non-GAAP adjustments | — | (1,151 | ) | 23,790 | (3,301 | ) | |||||||||
| Tax benefit from release of valuation allowance | — | — | (9,334 | ) | — | ||||||||||
| Non-GAAP net income, as defined | $ | 59,000 – 64,000 | $ | 83,414 | $ | 97,000 – 101,000 | $ | 116,226 | |||||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF FORECASTED AND ACTUAL GAAP DILUTED NET INCOME PER SHARE TO FORECASTED AND ACTUAL NON-GAAP DILUTED NET INCOME PER SHARE | |||||||||||||||
| Forecasted Three | Actual Three | Forecasted Twelve | Actual Twelve | ||||||||||||
| Months Ending | Months Ended | Months Ending | Months Ended | ||||||||||||
| October 31, 2026 | October 31, 2025 | January 31, 2027 | January 31, 2026 | ||||||||||||
| (Unaudited) | |||||||||||||||
| GAAP diluted net income per common share | $ | 1.35 – 1.45 | $ | 1.84 | $ | 4.10 – 4.20 | $ | 1.51 | |||||||
| Excluded from non-GAAP: | |||||||||||||||
| IEEPA tariff refund | — | — | (2.33 | ) | — | ||||||||||
| Interest income on IEEPA tariff refund | — | — | (0.07 | ) | — | ||||||||||
| Expenses related to Marc Jacobs acquisition | — | — | 0.17 | — | |||||||||||
| Asset impairments | — | 0.04 | — | 1.09 | |||||||||||
| Strategic opportunity related professional fees | — | 0.05 | — | 0.05 | |||||||||||
| One-time warehouse related severance expenses | — | — | — | 0.03 | |||||||||||
| Income tax impact of non-GAAP adjustments | — | (0.03 | ) | 0.54 | (0.07 | ) | |||||||||
| Tax benefit from release of valuation allowance | — | — | (0.21 | ) | — | ||||||||||
| Non-GAAP diluted net income per common share, as defined | $ | 1.35 – 1.45 | $ | 1.90 | $ | 2.20 – 2.30 | $ | 2.61 | |||||||
