G-III Apparel Group, Ltd. (GIII) Announces Fourth Quarter And Full-Year Fiscal 2025 Earnings Results; Provides Fiscal 2026 Outlook

G-III Apparel Group, Ltd. (GIII) today announced its financial results for the recent quarter, showcasing a robust performance. The company reported quarterly revenue of $839.5 million, surpassing the estimated $807.1 million and marking a significant beat. Earnings per share met expectations, aligning with the projected EPS of $0.97. This performance highlights G-III Apparel Group’s strong market position and effective operational strategies.

Key Highlights:

• G-III Apparel Group reported record full-year GAAP and non-GAAP earnings per diluted share for fiscal 2025, exceeding guidance.
• Net sales for fiscal 2025 were $3.18 billion, a 2.7% increase from the previous year.
• The company achieved a net income per diluted share of $4.20, with non-GAAP net income per diluted share at $4.42.
• Inventories decreased by 8% compared to the previous year, and the company ended the year with over $775 million in cash and availability.
• G-III plans to continue focusing on its owned brands, expecting double-digit sales increases for DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin.
• The company is transitioning out of its Calvin Klein and Tommy Hilfiger licenses.
• For fiscal 2026, G-III projects net sales of approximately $3.14 billion and net income between $192.0 million and $197.0 million.

Summary:

G-III Apparel Group, Ltd. reported strong financial results for fiscal 2025, achieving record earnings per diluted share and exceeding its guidance. The company saw a 2.7% increase in net sales, reaching $3.18 billion, and reported a net income per diluted share of $4.20, with non-GAAP net income per diluted share at $4.42. The company successfully reduced its inventories by 8% and ended the year with over $775 million in cash and availability. Morris Goldfarb, Chairman and CEO, highlighted the robust growth and strategic execution by the company’s teams, which included the introduction of four new brands and significant growth in owned brands. Goldfarb expressed confidence in the company’s brand power and business model, emphasizing the expected continued momentum of key owned brands like DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin.

Looking ahead to fiscal 2026, G-III Apparel Group anticipates net sales of approximately $3.14 billion and net income between $192.0 million and $197.0 million. The company is undergoing a transformation, focusing on its owned brands while transitioning out of its Calvin Klein and Tommy Hilfiger licenses. This strategic shift is expected to drive double-digit sales increases for its key brands, offsetting the reduced sales from the expiring licenses. The company’s strong financial position and proven track record provide flexibility for future investments, with a commitment to delivering long-term growth and creating shareholder value.

G-III Apparel Group, Ltd. (GIII) has experienced a turbulent period in the stock market, with its share price declining by 1.25% over the past week and a more significant drop of 13.37% in the last month. Over the past three months, the stock has plummeted by 26.87%, contributing to a six-month decline of 15.73% and a year-long decrease of 16.59%. Despite these price challenges, G-III Apparel Group maintains a relatively low price-to-earnings ratio of 6.96, suggesting that the stock might be undervalued compared to its earnings. The company’s earnings per share (EPS) has grown at a compound annual growth rate (CAGR) of 7.70% over the past two years, indicating a positive trend in profitability. However, the revenue has slightly contracted with a two-year CAGR of -0.55%, which might be a concern for investors looking for top-line growth. The return on invested capital stands at a healthy 10.72%, and the net profit margin is 4.81%, reflecting efficient management and profitability despite the revenue challenges. These fundamental metrics suggest that while the stock price has faced headwinds, the company’s underlying financial health remains relatively robust.

G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women’s suits, and women’s performance wear; and women’s handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi’s, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores. The company also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is headquartered in New York, New York.