G-III Apparel Group (GIII) Q3 2026 earnings summary

Executive summary

• Achieved strong Q3 profitability and gross margins, with earnings per share exceeding guidance despite a 9% sales decline and tariff impacts, driven by owned brands and full-price sales.

• Successfully replaced over 70% of lost PVH brand sales through organic growth in owned and licensed brands, with Donna Karan and Karl Lagerfeld delivering double-digit growth and DKNY showing strong digital and international performance.

• Strengthened balance sheet, ending Q3 with $174 million net cash after $49.8 million in share repurchases year-to-date and redeeming $400 million in notes.

• Initiated first-ever quarterly dividend of $0.10 per share, payable December 29, 2025.

• Marketing and digital investments drove over 20% traffic growth and higher conversion rates, supporting strong consumer demand.

Financial highlights

• Q3 net sales: $988.6–$989 million, down 9% from $1.09 billion YoY, mainly due to PVH license expirations.

• Non-GAAP EPS: $1.90, $0.37 above guidance midpoint; GAAP EPS: $1.84.

• Gross margin: 38.6%, outperforming expectations but down from 39.8% YoY due to tariffs.

• Non-GAAP net income: $83–$83.4 million, down from $116–$116.3 million YoY.

• Inventory up 3% YoY to $547 million, with disciplined management.

Outlook and guidance

• FY26 net sales expected at $2.98 billion, down from $3.18 billion in FY25.

• Raised FY26 non-GAAP EPS guidance to $2.80–$2.90; GAAP EPS guidance at $2.72–$2.82.

• Adjusted EBITDA for FY26 expected at $208–$213 million, down from $325.9–$326 million in FY25.

• Gross margin for FY26 expected to decline ~200 bps due to tariffs, with normalization and expansion expected in FY27.

• Board approved a new quarterly dividend program, starting at $0.10 per share.