G-III Apparel Group (GIII) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales were $536 million, down 8% year-over-year but ahead of guidance, driven by strong full-price sales and growth in owned brands despite the planned loss of PVH brand revenues.

• Gross margin expanded for the first time since fiscal 2025, up 350 basis points year-over-year, aided by healthy full-price selling, inventory management, and a one-time $102.7 million tariff refund 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.

• Balance sheet remains strong with $394 million in cash and inventories down 8% year-over-year.

Financial highlights

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

• Non-GAAP gross margin: 45.7%, up 350 bps year-over-year; GAAP gross margin: 64.9% due to a $102.7 million tariff recovery.

• Non-GAAP net loss: $8.7 million ($0.21 per share), compared to net income of $8.4 million ($0.19 per share) last year.

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

• Over $800 million in available liquidity at quarter end.

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.