G-III Apparel Group (GIII) Q2 2026 earnings summary

Executive summary

• Q2 FY26 net sales were $613.3M, down 5% YoY but exceeded guidance, with GAAP EPS at $0.25, also above expectations.

• Growth was driven by owned brands DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, while Calvin Klein and Tommy Hilfiger licenses are being exited.

• Gross margins declined to 40.8% from 42.8% YoY, pressured by tariffs and product mix, but mitigation efforts are underway.

• Strategic focus on scaling owned brands, optimizing supply chain, and investing in technology and marketing.

• Inventory levels rose 5% YoY due to accelerated receipts from tariffs.

Financial highlights

• Q2 FY26 net sales: $613.3M (down from $644.8M YoY); wholesale: $589M, retail: $41M.

• Gross margin: 40.8% (down from 42.8% YoY), impacted by tariffs and product mix.

• Non-GAAP net income: $11M ($0.25 per diluted share), down from $24M ($0.52) YoY.

• Inventory at $640M, up 5% YoY; net cash position of $286M.

• Operating cash flow for six months was $168.9M, up from $94.8M YoY.

Outlook and guidance

• FY26 net sales expected at ~$3.02B, down from $3.18B in FY25, reflecting license expirations, cautious retail orders, and tariff impacts.

• Non-GAAP net income forecasted at $113M–$123M (EPS $2.55–$2.75), down from $204M (EPS $4.42) in FY25.

• Adjusted EBITDA expected at $198M–$208M, down from $325M in FY25.

• Gross margin rate for FY26 expected to decline ~300 bps; majority of tariff impact in H2.

• Tariffs expected to add $155M in costs for FY26, with $75M unmitigated.