Net sales at G-III totalled $536m, down 8% compared to Q1 2026, whilst gross margin hit 64.9%, up from 42.2% in Q1 2026.
The increase includes the expected recovery of previously imposed tariffs on inventory sold last year. Excluding this impact, adjusted gross margin was 45.7%, up from 42.2% in 2026.
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Net income for Q1 2027 totalled $66.5m, or $1.50 per diluted share, up from $7.8m or $0.17 per diluted share in the same period last year.
Morris Goldfarb, chairman and CEO at G-III, said the results “demonstrate the G-III’s team’s ability to execute in a dynamic environment” as he shared that he was “very pleased” with the results.
“The quarter was better than expected with both our net sales and earnings coming in ahead of guidance,” he added.
“Our go-forward portfolio saw continued momentum and healthy full-price selling, which contributed to meaningful gross margin expansion versus the prior year. Based on our strong first quarter results, we are raising our earnings guidance for fiscal 2027.”
Improved outlook for FY 2027
G-III has increased its outlook for FY 2027, expecting net sales of $2.71bn and net income between $171m and $175m.
For Q2 2027, G-III says it expects net sales of $570m, down from $613.3m in Q2 2026 and net income between $7m and $11m.
The news follows shortly after G-III formed a joint venture with WHP Global to purchase the Marc Jacobs brand from LVMH. G-III will acquire the brand’s operating business and enter into a long-term licensing agreement.
“Our recently announced acquisition of the iconic Marc Jacobs brand in partnership with WHP Global marks an exciting new chapter for G-III and will significantly accelerate our transformation into a brand-led global powerhouse,” Goldfarb added.
“Marc Jacobs is one of the most influential brands in fashion, and we see tremendous opportunity to build on its strong foundation and drive long-term growth across categories, channels, and geographies.
“With an increasingly powerful portfolio of owned and licensed brands, disciplined execution, and a talented global team, we believe G-III is exceptionally well-positioned to drive sustainable long-term growth and significant shareholder value.”
