June 5, 2026

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G-III Apparel Group, Ltd. (NASDAQ: GIII) reported first-quarter fiscal 2027 results ahead of expectations, supported by stronger-than-expected sales, improved gross margin, tariff recovery benefits, and higher full-year earnings guidance.
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G-III is an apparel company that designs, sources, markets, and sells fashion products across owned and licensed brands, including DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, and others.
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The company reported a non-GAAP loss of $0.21 per share, narrower than estimates for a loss of $0.30, representing a 30.0% earnings surprise. Revenue came in at $535.96 million, above estimates of $530.00 million, though revenue declined 8.2%.

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Results Beat Guidance Despite Lower Sales

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G-III reported net sales of $536.0 million, down from $583.6 million in the prior-year quarter. Management said the quarter came in ahead of guidance, helped by momentum in the company’s go-forward portfolio and healthy full-price selling.
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Gross margin increased to 64.9% from 42.2%, helped by a $102.7 million pre-tax benefit tied to the expected recovery of previously incurred tariffs. Excluding that benefit, adjusted gross margin still improved 350 basis points to 45.7%.
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Net income was $66.5 million, or $1.50 per diluted share, compared with $7.8 million, or $0.17 per share, a year earlier. On a non-GAAP basis, the company reported a loss of $0.21 per share.
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G-III ended the quarter with $394.2 million in cash and cash equivalents, up from $257.8 million a year earlier. Inventories declined 8% to $417.9 million.

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Guidance Raised

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G-III raised its fiscal 2027 earnings outlook.
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The company now expects fiscal 2027 net sales of approximately $2.71 billion, which includes the loss of about $470 million in sales from Calvin Klein and Tommy Hilfiger products.
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GAAP EPS is expected to be $3.85 to $3.95, while non-GAAP EPS is expected to be $2.15 to $2.25. The outlook does not include any impact from the pending Marc Jacobs transaction.
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For the second quarter, G-III expects net sales of approximately $570 million and non-GAAP EPS of $0.15 to $0.25.

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The Bigger Picture

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G-III’s quarter showed progress despite a lower revenue base.
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Sales declined as the company continues reshaping its portfolio, but earnings came in ahead of expectations, margins improved, inventory fell, and management raised full-year guidance. The pending Marc Jacobs deal could become a major part of G-III’s shift toward a more brand-led global fashion business.
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