Profit Boosts G-III Outlook
G-III Apparel Group Reports Strong Q1 Profit, Raises Fiscal 2027 Outlook Despite Expected Sales Decline
G-III Apparel Group reported first-quarter fiscal 2027 results for the period ended April 30, 2026, with net sales falling year over year to about $536 million but net income surging to about $66.5 million, translating to roughly $1.50 per diluted share. The company attributed the improved profitability to sharply higher gross margin, including a sizable tariff-recovery benefit, and it pointed to stronger full-price selling, improved margins, and lower inventories. G-III raised its full-year fiscal 2027 earnings guidance, projecting net sales of about $2.71 billion and net income between roughly $171 million and $175 million, despite expecting sales to decline year over year due to the loss of around $470 million in Calvin Klein and Tommy Hilfiger product revenues. For the second quarter ending July 31, 2026, it guided net sales near $570 million and diluted earnings per share in a range of about $0.15 to $0.25. In addition, the company reiterated that its pending joint-venture acquisition of the Marc Jacobs operating business is not yet reflected in its outlook, as it continues a strategic shift toward brand-led growth. TipRanks characterizes the stock as Neutral, citing financial flexibility and cash generation alongside concerns about weaker prior profitability and guidance that implies lower sales and near-term softness.
Key Points
G-III said its first-quarter gross margin jumped to 64.9%, driven “largely” by a $102.7 million tariff-recovery benefit—an amount and margin figure not specified in the summary.
Despite the strong GAAP profit, G-III reported a non-GAAP deterioration in operating results: it showed a non-GAAP per-share loss of $0.21 (per TipRanks’ Spark coverage), which the summary did not mention.
For fiscal 2027, G-III’s non-GAAP earnings outlook was characterized as EPS of 2.15–2.25 (Seeking Alpha’s automated coverage of the guidance). The summary discussed GAAP net income guidance but not this non-GAAP EPS range.
Second-quarter (ending July 31, 2026) guidance included year-ago comparisons: net sales of $570.0 million versus $613.3 million last year, and diluted EPS of $0.15–$0.25 versus $0.25 last year (with net income expected $7.0m–$11.0m versus $10.9m last year).
In the first quarter, G-III also reported basic EPS from continuing operations of $1.58 versus $0.18 a year earlier (while diluted EPS was $1.50 versus $0.17), adding detail beyond the summary’s single diluted-share figure.
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