G-III Apparel Group (GIII) investor relations material

Executive summary

• First quarter fiscal 2027 net sales were $536 million, down 8% year-over-year but ahead of guidance, driven by strong owned brand growth and despite the planned loss of PVH brand revenues.

• Gross margin expanded to 64.9% from 42.2% year-over-year, primarily due to a $102.7 million pre-tax IEEPA tariff recovery, with adjusted gross margin at 45.7%.

• Net income for the quarter was $66.5 million ($1.50 per diluted share), up from $7.8 million ($0.17 per share) last year, driven by the tariff benefit.

• The acquisition of Marc Jacobs in partnership with WHP Global marks a strategic milestone, accelerating the transition to higher-margin, owned brands.

• Own brands such as Donna Karan, DKNY, Karl Lagerfeld, and Vilebrequin delivered strong growth, with Donna Karan up 40% and digital sales surging across brands.

Financial highlights

• Q1 net sales: $536 million, down 8% year-over-year but above guidance.

• Wholesale segment sales: $514.8 million; retail segment sales: $40.6 million, with retail comps up for Karl Lagerfeld Paris, Donna Karan, and DKNY.

• Non-GAAP net loss: $8.7 million ($0.21 per share), ahead of guidance; GAAP net income: $66.5 million ($1.50 per share).

• Cash and cash equivalents: $394 million at quarter end; inventories down 8% year-over-year to $418 million.

• SG&A expenses increased to $255 million from $231 million year-over-year, mainly due to compensation and acquisition-related fees.

Outlook and guidance

• Fiscal 2027 net sales expected at $2.71 billion, reflecting the loss of $470 million in Calvin Klein and Tommy Hilfiger sales.

• Non-GAAP net income guidance raised to $95–$99 million ($2.15–$2.25 per share); GAAP net income projected at $171–$175 million ($3.85–$3.95 per share).

• Full-year adjusted EBITDA expected at $178–$182 million.

• Q2 net sales expected at $570 million; non-GAAP net income $7–$11 million.

• Gross margin expansion of 400 basis points expected for the year.