G III APPAREL GROUP LTD /DE/ (GIII) Earnings History

G III APPAREL GROUP LTD /DE/ - Q3 FY2026 Earnings

Filed at: Dec 9, 2025, 7:30 AM EST|Read from source

EXECUTIVE SUMMARY

G-III Apparel Group reported a strong third quarter with gross margins and earnings exceeding expectations, driven by its owned brands and a healthy mix of full-price sales. The company is raising its full-year earnings guidance but tempering expectations due to consumer environment uncertainties and tariff pressures.

POSITIVE HIGHLIGHTS

  • •

    GAAP Net Income Per Diluted Share of $1.84 and Non-GAAP Net Income Per Diluted Share of $1.90 for the Third Quarter, both exceeding guidance.

    positive
  • •

    Introduced first ever quarterly dividend of $0.10 per share.

    positive
  • •

    Total debt decreased 95% to $10.6 million, resulting in a net cash position of $173.5 million.

    positive
  • •

    Raised fiscal 2026 earnings guidance for both GAAP and Non-GAAP Net Income Per Diluted Share.

    positive

CONCERNS & RISKS

  • •

    Net sales decreased 9% to $988.6 million compared to $1.09 billion in the prior year's third quarter.

    negative
  • •

    Net income for the third quarter decreased to $80.6 million ($1.84 per diluted share) from $114.8 million ($2.55 per diluted share) in the prior year.

    negative
  • •

    Full-year fiscal 2026 net sales are expected to be approximately $2.98 billion, down from $3.18 billion in fiscal 2025.

    negative
  • •

    The gross impact of tariffs is anticipated to be approximately $135 million, with an unmitigated impact estimated at $65 million.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$988.65M
-9.0%
Prior year: $1.09B
Annual (YTD)
$2.98B
N/A
Prior year: $3.18B
Net Income
Quarterly
$80.59M
-29.8%
Prior year: $114.77M
Annual (YTD)
$121.00M
N/A
Prior year: $193.57M
EPS (Diluted)
Quarterly
$1.84
-27.8%
Prior year: $2.55
Annual (YTD)
$2.72
N/A
Prior year: $4.20
Operating Income
Quarterly
$112.30M
-32.5%
Prior year: $166.34M
Annual (YTD)
$137.08M
N/A
Prior year: $221.30M
EPS (Basic)
Quarterly
$1.91
-27.1%
Prior year: $2.62
Annual (YTD)
$2.31
N/A
Prior year: $3.24

MARGIN ANALYSIS

Gross Margin
Current Quarter
38.6%
Prior Year
39.8%
YoY Change
-118 bps
Operating Margin
Current Quarter
11.4%
Prior Year
15.3%
YoY Change
-395 bps
Net Margin
Current Quarter
8.2%
Prior Year
10.6%
YoY Change
-241 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2026

net_sales
$2980000.0B
"Previous guidance was $3.02 billion."
net_income
121,000,000—126,000,000
Mid-point: 123,500,000
"Previous guidance was $112.0 million - $122.0 million."
eps_diluted
$2.72—$2.82
Mid-point: $2.77
"Previous guidance was $2.53 - $2.73."
non_gaap_net_income
125,000,000—130,000,000
Mid-point: 127,500,000
"Previous guidance was $113.0 million - $123.0 million."
non_gaap_eps_diluted
$2.80—$2.90
Mid-point: $2.85
"Previous guidance was $2.55 - $2.75."
adjusted_ebitda
208,000,000—213,000,000
Mid-point: 210,500,000
"Previous guidance was $198.0 million - $208.0 million."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 FY2026
Professional fees related to a potential strategic opportunity
Excluded from non-GAAP measures.
+$2.365M
$0.05 per share
Q3 FY2026
Asset impairments
Excluded from non-GAAP measures.
+$1.607M
$0.04 per share
Q3 FY2025
One-time severance expenses related to a closed warehouse
Excluded from non-GAAP measures.
+$0.53M
$0.01 per share
Q3 FY2025
Write-off of deferred financing costs related to the redemption of senior secured notes
Excluded from non-GAAP measures.
+$1.598M
$0.04 per share
Total Impact
+$6.1M$0.14 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Delivered a strong third quarter with gross margins and earnings far exceeding expectations.

— G III APPAREL GROUP LTD /DE/, Q3 FY2026 2026 Earnings Call

Brands are resonating with consumers and encouraged by solid demand throughout the holiday season to date.

— G III APPAREL GROUP LTD /DE/, Q3 FY2026 2026 Earnings Call

Raising fiscal 2026 earnings guidance to reflect third quarter outperformance, tempered by uncertainties around the consumer environment and tariff-related margin pressures.

— G III APPAREL GROUP LTD /DE/, Q3 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.