During the year ended 31 January 2026, the company’s net sales for the year fell 7.0% to $2.96bn, down from $3.18bn in the previous year. This is below the anticipated sales of approximately $2.98bn, as outlined in its third quarter result statement.
G-III Apparel also saw its net income fall to $67.4m, which translates to $1.51 per diluted share, compared to the prior year’s figures of $193.6m or $4.20 per diluted share.
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The company expected net income to range from $121.0m to $126.0m, with diluted earnings per share expected to be between $2.72 and $2.82.
The FY26 performance included $46.1m in non-cash asset impairment charges, amounting to $1.04 per diluted share. It also included a bad debt expense of $17.5m primarily linked to the bankruptcy of Saks Global, equal to $0.30 per diluted share after tax.
In the fourth quarter ended 31 January 2026, G-III saw net sales decrease by 8.1% to $771.5m from $839.5m a year earlier, while posting a net loss of $31.9m. The quarter included further asset impairment and bad debt expenses.
The company ended the fiscal year with cash and cash equivalents of $406.7m, up from $181.4m last year, and inventories down 3.8% to $460m.
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By GlobalDataG-III Apparel chairman and CEO Morris Goldfarb commented: “Fiscal 2026 was a pivotal year for G-III. The strength and global recognition of our brands, together with a disciplined operating model and strong balance sheet, enabled us to deliver solid performance despite a challenging environment.
“For the full year, our go forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year. I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy.”
Outlook for first quarter and fiscal 2027
Looking ahead, G-III Apparel expects net sales for fiscal 2027 to total approximately $2.71bn, reflecting a loss of $470m in Calvin Klein and Tommy Hilfiger product sales.
Forecasted net income is between $88m and $92m, or diluted earnings per share between $2.00 and $2.10.
In the first quarter of fiscal 2027, the company projects net sales of about $530m, down from last year’s comparable figure of $583.6m. It anticipates a net loss between $18mm and $13m.
“Looking to fiscal 2027, we are building on the momentum of our go-forward portfolio, which we expect to deliver high-single digit growth for the year, helping to offset the significant lost sales as we exit the Calvin Klein and Tommy Hilfiger businesses. We are focused on driving gross margin expansion while streamlining our cost structure to unlock productivity and profitability across the business,” Goldfarb added.
The news follows after G-III announced that its first quarter (Q1) earnings for fiscal 2026 (FY26) exceeded the upper limit of its forecast, thanks to the robust growth of its key owned brands DKNY, Karl Lagerfeld, and Donna Karan. G-III’s growth in Q1 nearly compensated for the revenue loss from the discontinued Calvin Klein jeans and sportswear license business.
