G-III Apparel Group (GIII) investor relations material

Executive summary

• Second quarter earnings exceeded guidance, driven by significant gross margin expansion and disciplined expense management.

• Net sales declined 10% year-over-year to $555 million, mainly due to the exit of Calvin Klein and Tommy Hilfiger licenses, but the go-forward portfolio grew at a high single-digit rate with improved sales quality and full-price selling.

• The acquisition of Marc Jacobs was completed, marking a transformational milestone and expanding the owned brand portfolio, with long-term annual revenue potential of $1 billion.

• Continued transformation efforts and a strong brand portfolio position the company for future value creation.

Financial highlights

• Net sales: $555 million, down from $613 million year-over-year.

• Gross margin: 45.2%, up 440 basis points from 40.8% last year.

• GAAP net income: $20.2 million ($0.46 per diluted share) vs. $10.9 million ($0.25) last year.

• Non-GAAP net income: $11.5 million ($0.26 per diluted share) vs. $11.2 million ($0.25) last year.

• Cash and cash equivalents at quarter-end were $529 million, up from $302 million year-over-year.

Outlook and guidance

• Fiscal 2027 net sales guidance reiterated at $2.71 billion, down 8% year-over-year, excluding Marc Jacobs.

• GAAP net income forecasted at $181 million–$185 million (EPS $4.10–$4.20).

• Non-GAAP net income projected at $97 million–$101 million (EPS $2.20–$2.30).

• Adjusted EBITDA expected between $174 million and $178 million.

• Marc Jacobs expected to generate $360 million in sales this year (excluding licensing), with long-term potential of $1 billion annually; acquisition expected to be slightly dilutive in fiscal 2027, accretive thereafter.