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

Executive summary

• Q1 FY26 earnings and EPS exceeded guidance, driven by double-digit growth in DKNY, Karl Lagerfeld, and Donna Karan, offsetting the exit of Calvin Klein and Tommy Hilfiger licenses, despite a 4% year-over-year sales decline.

• Newly launched brands Nautica Jeans, Halston, and Champion Outerwear performed well; Converse and BCBG launches are on track for Fall.

• Inventory was managed down 5% year-over-year, and liquidity remained strong at $740 million.

• Management reaffirmed FY26 net sales guidance and is actively mitigating tariff impacts.

• Cancelled Sonia Rykiel relaunch and exited Calvin Klein and Tommy Hilfiger businesses, reallocating resources and streamlining operations.

Financial highlights

• Q1 FY26 net sales were $583.6 million, down 4% year-over-year; wholesale sales fell to $563 million, retail sales rose to $36 million.

• Non-GAAP net income was $8.4 million ($0.19 per diluted share), up from $5.8 million ($0.12) last year; GAAP net income was $7.8 million ($0.17 per share).

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

• SG&A expenses decreased to $231.5 million from $236.6 million, mainly due to lower advertising and compensation costs.

• Interest and financing charges dropped to $0.5 million from $5.4 million after redeeming $400 million in notes.

Outlook and guidance

• FY26 net sales guidance reaffirmed at approximately $3.14 billion.

• Q2 FY26 net sales expected at $570 million (vs. $645 million prior year), with EPS guidance of $0.02–$0.12.

• Net income, non-GAAP net income, and adjusted EBITDA guidance for FY26 withdrawn due to tariff and macroeconomic uncertainty.

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

• Management is monitoring supply chain, tariffs, and inflation, and is diversifying sourcing.