For the quarter ended 31 July 2026, G-III Apparel posted net sales of $554.1m, compared to $613.2m in the same period a year earlier.
However, net income more than doubled year-on-year to $20.2m, which translates to $0.46 per diluted share, up from $10.9m, or $0.25 per diluted share, in the previous year’s quarter.
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The improvement was attributed to a 440-basis-point increase in gross margin, reaching 45.2%, which G-III said reflected higher pricing and a shift toward higher-margin owned brands.
G-III chairman and chief executive officer Morris Goldfarb said: “Our second quarter results reflect strong execution across the organisation, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go-forward portfolio grew at a high-single-digit rate during the quarter, reinforcing our confidence in the power of our brands and business model.”
The company reported cash and cash equivalents of $529.1m at the end of the quarter, up from $301.8m a year ago, while inventories decreased by 13% to $555m.
During the quarter, G-III returned $12.2m to shareholders, consisting of $7.9m in share repurchases and $4.3m in dividend payments.
The period also saw G-III advance its portfolio strategy with the acquisition of Marc Jacobs, which Goldfarb described as having “significantly strengthened” the group’s brand mix and global presence.
The company updated its outlook for the fiscal year ending 31 January 2027 but noted that its outlook does not include any impact related to the Marc Jacobs acquisition.
It plans to provide a more specific, brand-inclusive guidance framework when it reports third-quarter earnings but reiterates that the transaction is projected to be slightly dilutive for the remainder of fiscal 2027.
Full-year net income is forecast between $181.0m and $185.0m, or diluted earnings per share between $4.10 and $4.20.
Meanwhile, full-year non-GAAP net income is expected to be lower, in the range of $97.0m to $101.0m.
This variance occurs because the GAAP net income forecast includes a large, one-time favourable tariff refund adjustment that has been excluded from the adjusted non-GAAP core operational metrics.
G-III also predicts adjusted EBITDA of $174m to $178m, below the $192.4m achieved in fiscal 2026.
For the third quarter of FY27, ending 31 October 2026, the company anticipates net sales of $870m, down from $988.6m year-on-year.
Projected net income for the quarter is between $59m and $64m, or $1.35 to $1.45 per diluted share, compared to $80.6m, or $1.84 per diluted share, a year ago.
G-III’s outlook assumes tariff rates will remain at their current levels through the remainder of the fiscal year.
Goldfarb added: “Our strategic transformation has taken a meaningful step forward with the addition of Marc Jacobs. The acquisition significantly strengthens our portfolio and further enhances our position as a global fashion leader. I am extremely optimistic about the future of G-III and believe we have the brands, capabilities, and financial flexibility to capitalise on the opportunities ahead and create long-term value for our shareholders.”
