G-III Apparel Group (GIII) Q1 2026 earnings summary

Executive summary

• First quarter FY26 earnings and EPS exceeded guidance, driven by double-digit growth in DKNY, Karl Lagerfeld, and Donna Karan, offsetting lost sales from exited Calvin Klein and Tommy Hilfiger licenses, despite a 4% year-over-year sales decline.

• Newly launched brands such as Nautica Jeans, Halston, and Champion Outerwear performed well; digital and omni-channel enhancements continued, with North American retail improving.

• Net income rose to $7.8 million from $5.8 million year-over-year; non-GAAP EPS was $0.19, both above guidance.

• Management reaffirmed FY26 net sales guidance and is actively mitigating tariff impacts, while maintaining strong liquidity and a net cash position.

• Cautiously optimistic about the consumer environment and leveraging market disruption to capture share.

Financial highlights

• Q1 FY26 net sales were $583.6 million, down 4% year-over-year, with wholesale sales at $563 million and retail sales at $36 million.

• Gross margin was 42.2% (down from 42.5%); retail segment gross margin improved to 53.5% from 47%.

• Non-GAAP net income was $8.4 million ($0.19 per diluted share), up from $5.8 million ($0.12 per share) year-over-year.

• SG&A expenses decreased to $231 million from $237 million year-over-year.

• Inventories ended at $456 million, down 5% year-over-year; net cash position increased to $239 million from $82 million.

Outlook and guidance

• FY26 net sales guidance reaffirmed at approximately $3.14 billion; profit and adjusted EBITDA guidance withdrawn due to tariff and macroeconomic uncertainty.

• Q2 FY26 net sales expected at $570 million (vs. $645 million prior year); non-GAAP EPS guidance of $0.02–$0.12.

• Anticipates low single-digit sales increase in Q3 and mid single-digit in Q4, driven by new launches.

• Management is monitoring supply chain disruptions, inflation, and consumer demand volatility, and is diversifying sourcing.