G-III Apparel Group (GIII) Q4 2025 earnings summary

Executive summary

• Achieved record non-GAAP EPS of $4.42, up 9% year-over-year, and record GAAP EPS, both exceeding guidance despite challenging market conditions and license losses.

• Fiscal 2025 net sales rose 2.7% to $3.18 billion, driven by over 20% growth in key owned brands and successful new brand launches.

• Strategic focus shifted to owned brands, now over half of total net sales, with licensing income from these brands up 10% to $80 million.

• Retail segment turnaround in North America cut losses in half, adding $15 million to the bottom line.

• Ended the year with over $775 million in cash and availability, and significantly reduced total debt.

Financial highlights

• Q4 net sales were $840 million, up 10% year-over-year; full-year net sales reached $3.18 billion, up 2.7%.

• Q4 non-GAAP net income was $58 million ($1.27 per diluted share), up from $36 million ($0.76) last year.

• Full-year non-GAAP net income was $204 million ($4.42 per diluted share), up from $190 million ($4.04) in fiscal 2024.

• Gross margin for fiscal 2025 was 40.8%, up from 40.1% in fiscal 2024; Q4 gross margin was 39.5%.

• Adjusted EBITDA for fiscal 2025 was $325.9 million, up from $324.1 million in fiscal 2024.

Outlook and guidance

• Fiscal 2026 net sales expected at $3.14 billion, down 1% year-over-year, reflecting license expirations.

• Non-GAAP EPS guidance for fiscal 2026 is $4.15–$4.25; adjusted EBITDA expected at $310–$315 million.

• Q1 2026 net sales expected at $580 million, with non-GAAP EPS of $0.05–$0.15.

• Double-digit growth expected in key owned brands to offset most of the license revenue decline.

• Tax rate for fiscal 2026 estimated at 28.5%; net interest expense expected at ~$9 million.