G-III Apparel Group (GIII) Q2 2025 earnings summary

Executive summary

• Second quarter fiscal 2025 net sales were $644.8 million, down 2% year-over-year, but net income and EPS exceeded guidance, driven by strong owned brands and the successful Donna Karan relaunch.

• DKNY and Karl Lagerfeld brands grew double-digits; new global apparel license signed for Converse, with product launch expected Fall 2025.

• Raised full-year earnings outlook, reaffirmed net sales guidance, and expressed optimism for the remainder of the year despite macroeconomic uncertainty.

• Increased investment in AWWG to nearly 19%, expanding international reach and distribution partnerships.

• Retail segment sales increased despite store closures, driven by higher sales at Karl Lagerfeld Paris stores.

Financial highlights

• Q2 net income was $24.2 million ($0.53 per diluted share), up from $16.4 million ($0.35) last year; non-GAAP EPS was $0.52 vs. $0.40.

• Net sales for Q2 were $645 million, down from $660 million year-over-year, but in line with expectations.

• Gross margin rate expanded 90 basis points to 42.8%, driven by higher-margin owned brands.

• Inventory decreased 24% to $610.5 million, with improved aging and alignment to future sales.

• Ended the quarter with no debt and $414.8 million in cash and equivalents.

Outlook and guidance

• Fiscal 2025 net sales expected at $3.20 billion, up 3% year-over-year; guidance unchanged.

• Fiscal 2025 non-GAAP net income guidance raised to $180–$185 million ($3.95–$4.05 per diluted share).

• Adjusted EBITDA for fiscal 2025 expected between $305–$310 million.

• Q3 net sales expected at $1.1 billion, with non-GAAP EPS of $2.20–$2.30.

• Full-year gross margin rate expected to be similar to fiscal 2024; higher SG&A in second half due to marketing and investments.