G-III Apparel Group (GIII) Q3 2025 earnings summary

Executive summary

• Third quarter net sales rose to $1.09 billion, up 1.8% year-over-year, driven by over 30% growth in owned brands DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin, despite declines in Calvin Klein and Tommy Hilfiger and challenging market conditions.

• Retail segment transformation progressed, with high double-digit comparable sales growth at Karl Lagerfeld Paris and DKNY stores, and losses reduced by over 50% in North America.

• Strategic focus remains on expanding owned brands, international growth, and a diversified license portfolio, supported by increased marketing and operational investments.

• Inventory levels decreased 10% year-over-year, and total debt was reduced by 52% following a $400 million note redemption.

• Net income per diluted share was $2.55 (GAAP) and $2.59 (non-GAAP), both down from last year but above expectations.

Financial highlights

• Q3 net sales were $1.09 billion, up from $1.07 billion year-over-year, with gross margin at 39.8%, slightly down from 40.6% but above expectations.

• Non-GAAP net income for Q3 was $116.3 million ($2.59 per diluted share), compared to $129.6 million ($2.78 per share) last year.

• Retail segment net sales were $42 million, up from $33 million, with gross margin improving to 52.3% from 49.1% year-over-year.

• Inventory at quarter-end was $532 million, down from $591.5 million year-over-year.

• Net debt position improved to $119 million from $265 million last year, after $80 million investment in AWWG and $60 million in stock repurchases.

Outlook and guidance

• Fiscal 2025 net sales guidance updated to $3.15 billion, representing 2% growth year-over-year.

• Full-year non-GAAP EPS guidance raised to $4.10–$4.20; non-GAAP net income expected between $186–$191 million.

• Adjusted EBITDA for fiscal 2025 expected between $309–$314 million.

• Gross margin rate expansion expected for fiscal 2025, driven by owned brands, with incremental SG&A expenses of $55 million mainly for marketing and talent.

• Capital expenditures projected at $50 million, mainly for shop-in-shops, technology, and store fixtures.