Raised Annual Guidance
G-III Apparel raises full-year guidance and targets strong profitability despite declining revenue.
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Key Points
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Q2 2026 revenue declined to $554.09 million from $613.27 million a year earlier, while net income rose to $20.21 million from $10.94 million; for the six months ended July 31, 2026, sales were $1,090.06 million vs $1,196.88 million, and net income was $86.75 million vs $18.70 million.
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Six-month diluted earnings per share were $1.95 and basic earnings per share were $2.05, reflecting improved profitability despite weaker top-line sales.
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Last year's third quarter non-GAAP net income was $83.4 million (GAAP net income was $80.6 million), providing context for this year's expected Q3 GAAP net income of $59–$64 million.
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G-III's stock performance has been mixed; it closed around $32.17, with the last three months down about 4.57% but the last 12 months up about 14.23%.
G-III Apparel raised its full-year guidance on stronger profitability, targeting net income of $181–$185 million and sales around $2.71 billion for fiscal 2027. The New York apparel maker reported Q2 revenue of $554.09 million and net income of $20.21 million, beating earnings estimates despite missing on sales Pulse2. The guidance increase comes even as G-III absorbs roughly $460 million in lost sales from losing the Calvin Klein and Tommy Hilfiger licenses Seeking Alpha.
Q2 Results Show Margin Gains Offset Revenue Decline
G-III's second quarter saw net sales drop 10% to $554.09 million from $613.27 million a year prior GuruFocus. But profitability improved sharply. Net income nearly doubled to $20.21 million from $10.94 million, and the company posted diluted EPS of $0.46, beating consensus estimates by $0.03 Pulse2. Gross margins expanded 440 basis points to 45.2%, driven by favorable pricing and product mix.
For the first half of fiscal 2027, sales totaled $1,090.06 million versus $1,196.88 million in the prior year. But net income jumped to $86.75 million from just $18.70 million, a 364% increase Seeking Alpha. The six-month diluted EPS reached $1.95, reflecting the company's ability to boost profitability despite weaker top-line growth.
Third Quarter Outlook Reflects Ongoing License Loss Impact
G-III expects third-quarter net income of $59–$64 million on sales near $870 million Watchlist News. This represents a decline from last year's Q3 GAAP net income of $80.6 million and sales of $988.6 million GuruFocus. The comparison shows the pressure from losing Calvin Klein and Tommy Hilfiger, which accounted for about $460 million in annual sales. The company guided for Q3 diluted EPS of $1.35–$1.45.
Stock Treads Water Despite Strong Margin Performance
G-III's stock closed near $32.17 with mixed momentum. Over the past three months, shares have slid 4.57%, but the 12-month return stands at a solid 14.23% Seeking Alpha. Analysts have issued mixed revisions in recent weeks. The company's strong financial health score and improved profitability have won praise from some investors, even as the license losses create near-term headwinds.
Marc Jacobs and Portfolio Transition Define 2027
G-III is in the midst of a major transition as it navigates the loss of two major fashion licenses Seeking Alpha. The company designs, sources, and distributes apparel across 30-plus brands. Success now hinges on growth from its own brands and the test of its owned Marc Jacobs business, which some analysts view as critical to offsetting license revenue declines. Management's raised guidance suggests confidence in the portfolio shift.
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