G‑III Apparel Group reported third‑quarter fiscal 2026 results that included net sales of $988.6 million, a 9% decline from $1.09 billion a year earlier, and net income of $80.6 million, or $1.84 per diluted share. Non‑GAAP net income per diluted share was $1.90, reflecting a one‑time $2.4 million professional fee and a $1.6 million asset impairment. The company’s adjusted EBITDA for the quarter was $208.0 million, up from $198.0 million in the same period last year.
The revenue miss was driven by a 4% decline in wholesale sales, largely due to weaker demand in the U.S. wholesale channel and a slowdown in the European market. The company’s owned‑brand portfolio, which includes DKNY and Karl Lagerfeld, helped offset the weakness, but the overall mix shift toward lower‑margin wholesale segments weighed on top‑line growth. Management noted that tariff‑related margin pressures and broader consumer uncertainty contributed to the revenue shortfall.
Despite the revenue miss, G‑III’s earnings beat expectations by $0.06 per share, a 3% upside to consensus estimates of $1.78. The beat was largely a result of disciplined cost management, which kept operating expenses in line with revenue growth, and a favorable mix shift toward higher‑margin owned‑brand sales. Gross margin expanded to 38.6%, up from 37.8% a year earlier, reflecting stronger pricing power in the owned‑brand segment and successful mitigation of tariff impacts.
The company raised its fiscal 2026 guidance, projecting net sales of approximately $2.98 billion, down from the prior year’s $3.18 billion. Net income guidance was increased to $121.0 million–$126.0 million, compared with the previous $112.0 million–$122.0 million range, while non‑GAAP net income guidance was set at $125.0 million–$130.0 million, a significant lift from last year’s $203.6 million. Adjusted EBITDA guidance was also raised to $208.0 million–$213.0 million from $198.0 million–$208.0 million. Management said the revisions reflect confidence in maintaining profitability amid uncertain consumer demand and tariff pressures.
On December 4 2025, G‑III declared a quarterly cash dividend of $0.10 per share, payable on December 29 2025 to shareholders of record as of December 15 2025. The dividend marks the company’s first quarterly dividend program, underscoring its strengthened cash position and commitment to returning capital to shareholders while continuing to invest in owned‑brand growth and operational efficiencies.
CEO Morris Goldfarb said the quarter demonstrated “strong earnings far exceeding expectations, driven by the strength of our owned‑brand portfolio and a healthy mix of full‑price sales.” He added that the company’s new dividend program reflects its robust financial health and the ability to reward shareholders while pursuing strategic growth opportunities.
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