GIII Stock Price & Analysis

Earnings Surprise Report: G-III Apparel Group, Ltd. beats earnings expectations with reported EPS of $1.27, exceeding expectations of $0.97.

Top-Line Growth Achievement: The company achieved remarkable top-line growth of 2.7% to $3.18 billion, driven by over 20% growth in key owned brands such as DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin.

Non-GAAP EPS Growth: Record non-GAAP earnings per share of $4.42 in fiscal 2025, a 9% increase over the previous year, showcasing strong bottom-line growth.

Brand Relaunch Success: Successful relaunch of the Donna Karan brand, which exceeded internal expectations and delivered strong profitability with high average unit retail (AUR) and sell-through rates.

Retail Segment Turnaround: The retail segment turnaround in North America is showing positive results, cutting losses in half and improving overall performance.

International Growth Acceleration: Investment in All We Wear Group (AWWG) is expected to accelerate international growth, with AWWG generating over $650 million in revenues across 3,500 points of sale in over 86 countries.

Owned Brands Profit Driver: The company’s owned brands now represent over half of total net sales, providing a sustainable long-term profit driver with higher operating margins.

Licensing Income Increase: The licensing income from owned brands increased by 10% to over $80 million, contributing positively to profitability.

DKNY Brand Expansion: Strong performance in the DKNY brand, achieving mid-teen growth and expanding its product offerings, leading to over 1,000 new points of sale added this year.

Brand Growth and Expansion: Karl Lagerfeld brand saw over 20% growth, particularly in North America, with significant expansion in lifestyle product assortments and digital penetration.

Brand Resilience and Positioning: Vilebrequin brand achieved solid results despite market challenges, with a successful beach club concept contributing to brand positioning and status.

Strong Financial Position: The company ended the fiscal year with a strong balance sheet, improved net cash position of approximately $175 million, and reduced inventory levels by 8%.

Projected Net Sales Growth: For fiscal 2026, G-III expects continued growth in key owned brands, projecting net sales of approximately $3.14 billion, with a focus on long-term growth and shareholder value.

Sales Decline Analysis: Calvin Klein and Tommy Hilfiger businesses experienced a significant decline in net sales, with a decrease of approximately $188 million for Calvin Klein and $40 million for Tommy Hilfiger, indicating a troubling trend for these key brands.

Brand Contribution Decline: The company anticipates a further decline in the contribution of Calvin Klein and Tommy Hilfiger to total sales, projecting a drop from approximately 34% to 25% by the end of fiscal 2026, which raises concerns about the sustainability of revenue from these brands.

License Expiration Impact: The expiration of PVH licenses for Calvin Klein jeans and sportswear, which represented approximately $175 million of total revenue in fiscal 2025, creates a significant product void for retailers, potentially impacting future sales negatively.

Net Sales Decline Projection: Despite overall growth, the company expects a decrease in net sales for fiscal 2026, projecting approximately $3.14 billion, which is a decline of about 1% compared to fiscal 2025, indicating potential challenges ahead.

Non-GAAP Net Income Guidance: The guidance for non-GAAP net income for fiscal 2026 is expected to be between $192 million and $197 million, down from $204 million in fiscal 2025, suggesting a decrease in profitability.

Declining Net Sales Forecast: The first quarter of fiscal 2026 is expected to see net sales of approximately $580 million, down from $610 million in the same period of fiscal 2025, indicating a negative trend in early sales performance for the upcoming year.