G-III Apparel Group, Ltd. Announces Second Quarter Fiscal 2026 Earnings Results; Provides Updated Fiscal 2026 Outlook

G-III Apparel Group, Ltd. (GIII) today announced its financial results for the most recent quarter, revealing a revenue of $613.3 million, which surpassed analysts’ expectations by approximately $42.1 million. The company reported earnings per share that met estimates at $0.09. This strong performance highlights G-III’s resilience in the competitive apparel market and reflects its effective strategies in driving sales growth.

Key Highlights:

• Net income per diluted share of $0.25 and net sales of $613.3 million for Q2 fiscal 2026, both exceeding guidance.
• Share repurchases totaled $24.6 million, equating to 1,140,988 shares in the second quarter.
• The company maintains a strong cash position and availability.
• Updated fiscal 2026 guidance reflects a cautious outlook due to the macro environment and tariff impacts.

In the second quarter of fiscal 2026, G-III Apparel Group, Ltd. reported net sales of $613.3 million, a decrease from the previous year, but net income per diluted share of $0.25 exceeded expectations. Morris Goldfarb, Chairman and CEO, highlighted the strong performance driven by the company’s portfolio, including brands like DKNY and Donna Karan. He noted, “These results highlight our ability to execute on our strategic priorities and leverage our powerful corporate platform to maximize the full potential of our globally recognized brands.”

Looking ahead, G-III has updated its fiscal 2026 guidance, anticipating net sales of approximately $3.02 billion, down from $3.18 billion in fiscal 2025. The company expects net income to range between $112 million and $122 million, significantly lower than the previous year. Goldfarb mentioned the challenges posed by tariffs, estimating an incremental cost of about $155 million, which they are mitigating through vendor participation and strategic sourcing shifts. He expressed confidence in navigating the challenging environment and emphasized the company’s strong balance sheet as a foundation for future growth.

G-III Apparel Group, Ltd. (GIII) has experienced a notable price fluctuation recently, with a 16.65% increase over the past month, suggesting a resurgence in investor confidence. However, this positive momentum is tempered by a 6.77% decline over the last three months, indicating some volatility in the stock’s performance. The company’s price-to-earnings ratio stands at a low 6.37, which may attract value investors looking for bargains in the apparel sector. Despite a challenging revenue growth rate of -15.95% over the past two years, GIII has demonstrated impressive free cash flow growth of 126.75%, highlighting its ability to generate cash even in tough times. The return on invested capital at 10.82% and a net profit margin of 5.41% further underscore the company’s operational efficiency. As GIII navigates these mixed signals, investors will be keenly watching how the company leverages its cash flow to drive future growth and stabilize its revenue trajectory. Overall, while the stock shows promise, the underlying fundamentals suggest a cautious approach may be warranted.

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.