G-III Apparel Group (GIII) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a pivotal year with strategic transformation, focusing on owned brands and exiting Calvin Klein and Tommy Hilfiger licenses, resulting in strong underlying performance despite a challenging environment.

• Key owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin) delivered mid-single-digit growth and now represent nearly 60% of revenue.

• Investments in infrastructure, technology, and talent supported growth and improved operational efficiency.

• Balance sheet and liquidity improved, ending with over $400 million in cash and $900 million in total liquidity.

• Over $50 million returned to shareholders via share repurchases and a new dividend.

Financial highlights

• Fiscal 2026 net sales were $2.96 billion, down 7% year-over-year, impacted by the loss of PVH brands; Q4 net sales: $771 million (down 8% YoY).

• Non-GAAP EPS for fiscal 2026 was $2.61, including a $0.30 impact from Saks bankruptcy; Q4 non-GAAP EPS: $0.30.

• Gross margin for fiscal 2026 was 39.4% (down from 40.8% YoY), mainly due to tariffs; Q4 gross margin: 37%.

• Full year non-GAAP net income: $116 million (down from $204 million YoY); GAAP net income: $67.4 million.

• Inventories decreased 4% YoY to $460 million, reflecting disciplined management.

Outlook and guidance

• Fiscal 2027 net sales expected at $2.71 billion, reflecting a $470 million reduction from expiring PVH licenses.

• Non-GAAP EPS expected between $2.00 and $2.10; net income projected at $88–92 million.

• Adjusted EBITDA expected between $158 million and $162 million (down from $192 million in fiscal 2026).

• Q1 2027 net sales expected at $530 million, with a net loss of $13–18 million.

• Gross margin improvement of up to 300 basis points expected for fiscal 2027.