G-III Apparel Group, Ltd. Reports First Quarter Fiscal 2026 Results
- Net income per share increased to $0.17 from $0.12 year-over-year
- Double-digit growth achieved in key owned brands DKNY, Karl Lagerfeld and Donna Karan
- Significant debt reduction of 96% to $18.7M from $426.4M last year
- Inventory optimization with 5% reduction to $456.5M
- Active capital return with $19.7M in share repurchases during Q1
- Net sales declined 4% to $583.6M compared to prior year
- Expected additional tariff expenses of approximately $135M for fiscal 2026
- Withdrawal of net income and adjusted EBITDA guidance due to tariff uncertainties
- Projected Q2 FY2026 sales decline to $570M from $644.8M last year
- Supply chain challenges and timing shifts affecting second quarter performance
Insights
G-III posted better-than-expected Q1 earnings despite sales decline, with potential tariff challenges ahead.
G-III Apparel Group delivered Q1 earnings that exceeded guidance, with diluted EPS of
The company has made significant progress in strengthening its balance sheet. Total debt decreased by
While G-III reaffirmed its full-year sales guidance of approximately
For Q2, G-III projects sales of around
G-III continues to strategically shift toward its owned brands while returning capital to shareholders through share repurchases, buying back 807,437 shares for
- Net Income Per Diluted Share of
$0.17 for the First Quarter Compared to$0.12 Last Year and Non-GAAP Net Income Per Diluted Share of$0.19 for the First Quarter Compared to$0.12 Last Year, Both Exceeding Guidance - Net Sales of
$583.6 Million for the First Quarter Compared to$609.7 Million Last Year - Repurchases of
$19.7 Million or 807,437 Shares in the First Quarter - Reaffirms Net Sales Guidance for Fiscal 2026
NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- G-III Apparel Group, Ltd. (NasdaqGS: GIII) (“G-III” or the “Company”) today reported results for the first quarter of fiscal 2026, ended April 30, 2025.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “G-III delivered solid first quarter results, marked by earnings that exceeded the high end of guidance. Our performance was fueled by double-digit growth of our key owned brands, DKNY, Karl Lagerfeld and Donna Karan, which largely offset the exit of the Calvin Klein jeans and sportswear businesses. These results underscore the strong demand and desirability of our brand portfolio and are a testament to our team’s outstanding execution.”
Mr. Goldfarb concluded, “We are reaffirming our net sales guidance for fiscal 2026 and working diligently to mitigate the impact of tariffs. Our experienced management team has a proven track record of successfully navigating periods of uncertainty, and we view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share. As we advance our strategic priorities, we have never been more confident in the global resonance of our brands and the significant growth potential ahead to drive long-term profitability and shareholder value.”
Results of Operations
First Quarter Fiscal 2026
Net sales for the first quarter ended April 30, 2025 decreased
Net income for the first quarter ended April 30, 2025 was
Non-GAAP net income per diluted share was
Balance Sheet as of First Quarter Fiscal 2026
Inventories decreased
Total debt decreased
Capital Allocation
Share repurchases of 807,437 for
Outlook
The Company has reaffirmed its net sales outlook for fiscal 2026. Due to uncertainty around tariffs and related macroeconomic conditions, the Company has withdrawn its net income, non-GAAP net income and adjusted EBITDA guidance for fiscal 2026 issued on March 13, 2025. Based on the tariff rates in place on June 5, 2025, the Company anticipates the unmitigated cost of tariffs on goods imported into the United States will result in additional expense of approximately
In addition, the Company today provided its outlook for its second quarter ending July 31, 2025.
Fiscal 2026
Net sales are expected to be approximately
Second Quarter Fiscal 2026
Net sales for the second quarter of fiscal 2026 are expected to be approximately
Net income for the second quarter of fiscal 2026 is expected to be between
Non-GAAP Financial Measures
Reconciliations of GAAP net income to non-GAAP net income, GAAP net income per diluted share to non-GAAP net income per diluted share and GAAP net income to adjusted EBITDA are presented in tables accompanying the financial statements included in this release and provide useful information to evaluate the Company’s operational performance. A description of the amounts excluded on a non-GAAP basis are provided in conjunction with these tables. Non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA should be evaluated in light of the Company’s financial statements prepared in accordance with GAAP.
About G-III Apparel Group, Ltd.
G-III Apparel Group, Ltd., a global leader in fashion with expertise in design, sourcing and marketing, owns and licenses a portfolio of over 30 preeminent brands. The Company is differentiated across unique brand propositions, product categories and consumer touch points. G-III owns ten iconic brands including, DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin, and licenses over 20 brands including Calvin Klein, Tommy Hilfiger, Nautica, Halston, Converse, BCBG and National Sports leagues, among others.
Statements concerning G-III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, risks related to the reliance on licensed product, risks relating to G-III’s ability to increase revenues from sales of its other products, new acquired businesses or new license agreements as licenses for Calvin Klein and Tommy Hilfiger product expire on a staggered basis, reliance on foreign manufacturers, risks of doing business abroad, supply chain disruptions, risks related to acts of terrorism and the effects of war, the current economic and credit environment risks related to our indebtedness, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business, risks related to G-III’s ability to reduce the losses incurred in its retail operations, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions, the impact on G-III’s business of the imposition of tariffs by the United States government and business and general economic conditions, including inflation and higher interest rates, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release.
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES (Nasdaq: GIII) CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) | ||||||||
| Three Months Ended April 30, | ||||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| Net sales | $ | 583,609 | $ | 609,747 | ||||
| Cost of goods sold | 337,065 | 350,854 | ||||||
| Gross profit | 246,544 | 258,893 | ||||||
| Selling, general and administrative expenses | 231,495 | 236,621 | ||||||
| Depreciation and amortization | 6,573 | 8,768 | ||||||
| Operating profit | 8,476 | 13,504 | ||||||
| Other income (loss) | 3,462 | (223 | ) | |||||
| Interest and financing charges, net | (461 | ) | (5,424 | ) | ||||
| Income before income taxes | 11,477 | 7,857 | ||||||
| Income tax expense | 3,718 | 2,305 | ||||||
| Net income | 7,759 | 5,552 | ||||||
| Less: loss attributable to noncontrolling interests | — | (250 | ) | |||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 7,759 | $ | 5,802 | ||||
| Net income attributable to G-III Apparel Group, Ltd. per common share: | ||||||||
| Basic | $ | 0.18 | $ | 0.13 | ||||
| Diluted | $ | 0.17 | $ | 0.12 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 43,748 | 45,484 | ||||||
| Diluted | 45,385 | 46,734 | ||||||
| Selected Balance Sheet Data (in thousands): | As of April 30, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| Cash and cash equivalents | $ | 257,785 | $ | 508,434 | ||||
| Working capital | 817,509 | 1,140,449 | ||||||
| Inventories | 456,482 | 479,671 | ||||||
| Total assets | 2,415,873 | 2,565,399 | ||||||
| Total debt | 18,742 | 426,351 | ||||||
| Operating lease liabilities | 269,922 | 224,452 | ||||||
| Total stockholders' equity | 1,684,094 | 1,519,875 | ||||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (In thousands) | ||||||||
| Three Months Ended | ||||||||
| April 30, 2025 | April 30, 2024 | |||||||
| (Unaudited) | ||||||||
| GAAP net income attributable to G-III Apparel Group, Ltd. | $ | 7,759 | $ | 5,802 | ||||
| Excluded from non-GAAP: | ||||||||
| One-time warehouse related severance expenses | 978 | — | ||||||
| Income tax impact of non-GAAP adjustments | (316 | ) | — | |||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 8,421 | $ | 5,802 | ||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. There were no non-GAAP exclusions for the first quarter of fiscal 2025. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME PER SHARE TO NON-GAAP NET INCOME PER SHARE | ||||||||
| Three Months Ended | ||||||||
| April 30, 2025 | April 30, 2024 | |||||||
| (Unaudited) | ||||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 0.17 | $ | 0.12 | ||||
| Excluded from non-GAAP: | ||||||||
| One-time warehouse related severance expenses | 0.03 | — | ||||||
| Income tax impact of non-GAAP adjustments | (0.01 | ) | — | |||||
| Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 0.19 | $ | 0.12 | ||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. There were no non-GAAP exclusions for the first quarter of fiscal 2025. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, 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) | ||||||||
| Three Months Ended | ||||||||
| April 30, 2025 | April 30, 2024 | |||||||
| (Unaudited) | ||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 7,759 | $ | 5,802 | ||||
| One-time warehouse related severance expenses | 978 | — | ||||||
| Depreciation and amortization | 6,573 | 8,768 | ||||||
| Interest and financing charges, net | 461 | 5,424 | ||||||
| Income tax expense | 3,718 | 2,305 | ||||||
| Adjusted EBITDA, as defined | $ | 19,489 | $ | 22,299 | ||||
Adjusted EBITDA is a “non-GAAP financial measure” which represents earnings before depreciation and amortization, interest and financing charges, net and income tax expense and excludes in fiscal 2026 one-time severance expenses related to a closed warehouse. Adjusted EBITDA is being presented as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry. Adjusted EBITDA should not be construed as an alternative to net income, as an indicator of the Company’s operating performance, or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity, as determined in accordance with GAAP.
| 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 | |||||||
| Months Ending | Months Ended | |||||||
| July 31, 2025 | July 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 1,000 - 6,000 | $ | 24,212 | ||||
| Excluded from non-GAAP: | ||||||||
| Gain on forgiveness of liabilities | — | (600 | ) | |||||
| Income tax impact of non-GAAP adjustments | — | 168 | ||||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 1,000 - 6,000 | $ | 23,780 | ||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes in fiscal 2025 the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own. The income tax impact of non-GAAP adjustments is calculated using the effective tax for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME PER SHARE TO FORECASTED AND ACTUAL NON-GAAP NET INCOME PER SHARE | ||||||||
| Forecasted Three | Actual Three | |||||||
| Months Ending | Months Ended | |||||||
| July 31, 2025 | July 31, 2024 | |||||||
| (Unaudited) | ||||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 0.02 - 0.12 | $ | 0.53 | ||||
| Excluded from non-GAAP: | ||||||||
| Gain on forgiveness of liabilities | — | (0.01 | ) | |||||
| Income tax impact of non-GAAP adjustments | — | — | ||||||
| Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 0.02 - 0.12 | $ | 0.52 | ||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes in fiscal 2025 the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own. The income tax impact of non-GAAP adjustments is calculated using the effective tax for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
G-III Apparel Group, Ltd.
Company Contact:
Priya Trivedi
SVP of Investor Relations and Treasurer
(646) 473-5228
FAQ
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