G-III Apparel Group (GIII) Q2 2027 earnings summary

Executive summary

• Second quarter earnings exceeded guidance, driven by gross margin expansion and disciplined expense management, despite a 10% year-over-year sales decline mainly due to the exit of Calvin Klein and Tommy Hilfiger licenses.

• Gross margin improved to 45.2%, up 440 basis points from 40.8% last year, supported by price increases, favorable product mix, and tariff refunds.

• Net income for the quarter was $20.2 million ($0.46 per diluted share), up from $10.9 million ($0.25) last year.

• The acquisition of Marc Jacobs was completed, funded by cash and borrowings, marking a transformational milestone and expanding the owned brand portfolio.

• Go-forward portfolio (excluding Calvin Klein and Tommy Hilfiger) grew at a high single-digit rate, with improved sales quality and full-price selling.

Financial highlights

• Net sales for Q2 were $554.1 million, down from $613 million year-over-year.

• Gross margin: 45.2%, up from 40.8% last year.

• GAAP net income: $20.2 million ($0.46 per diluted share) vs. $10.9 million ($0.25) last year.

• Non-GAAP net income: $11.5 million ($0.26 per diluted share) vs. $11.2 million ($0.25) last year.

• Cash and cash equivalents at quarter-end were $529.2 million, up from $301.8 million year-over-year, aided by tariff refunds.

Outlook and guidance

• Fiscal 2027 net sales guidance reiterated at $2.71 billion, down 8% year-over-year, excluding Marc Jacobs.

• Non-GAAP EPS guidance raised to $2.20–$2.30; GAAP EPS forecasted at $4.10–$4.20.

• Adjusted EBITDA expected between $174 million and $178 million.

• Marc Jacobs expected to generate $360 million in sales this year (excluding licensing), with long-term potential of $1 billion annually; acquisition expected to be slightly dilutive in fiscal 2027, accretive thereafter.

• Guidance excludes Marc Jacobs for fiscal 2027.