Loading...
01/11 17:46
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call shows strong financial performance with record EPS growth, improved margins, and a robust cash position. Despite challenges like tariff risks and licensing revenue loss, the company has diversified sourcing and mitigated impacts. The positive outlook is reinforced by raised earnings guidance, successful brand launches, and share repurchases. Analysts' questions revealed confidence in management's strategies. With a market cap of $1.2 billion, the stock is likely to see a positive reaction, driven by strong earnings, optimistic guidance, and strategic initiatives.
EPS $1.27, up 67% from $0.76 in the previous year, driven by higher sales and improvements in gross margins.
Net Sales (Q4 2025) $840 million, up 10% from $765 million in the same period last year, attributed to good sales increases in owned brands and the go-forward licensed portfolio.
Net Sales (Fiscal Year 2025) $3.18 billion, an increase of 2.7% from $3.1 billion in fiscal 2024, led by over 20% growth of key owned brands, offset by a $188 million decline in Calvin Klein and Tommy Hilfiger.
Gross Margin (Q4 2025) 39.5%, up from 36.9% in the previous year, positively impacted by higher penetration and performance of owned brands.
Gross Margin (Fiscal Year 2025) 40.8%, up from 40.1% in the prior year, driven by greater sales penetration of higher margin owned brands.
SG&A Expenses (Q4 2025) $244 million, up from $219 million in the previous year, correlated to the 10% sales increase and planned investments in marketing, technology, and talent.
SG&A Expenses (Fiscal Year 2025) $968 million, compared to $917 million in the previous year, with an increase as a percentage of sales to 30.4% from 29.6% due to higher investments.
Non-GAAP Net Income (Fiscal Year 2025) $204 million, up from $190 million, or $4.42 per diluted share, up 9% from $4.04, driven by gross margin expansion and interest expense savings.
Inventory Levels $478 million, down 8% from $520 million in the previous year, well-aligned to support future sales.
Net Cash Position $175 million, improved from $90 million in the previous year, reflecting a strong balance sheet.
New Product Launches: G-III Apparel Group successfully launched four new brands: Nautica, Halston, Champion outerwear, and a relaunch of Donna Karan, which exceeded internal expectations and delivered strong profitability.
Donna Karan Brand Expansion: The relaunch of Donna Karan included a comprehensive lifestyle collection and expanded distribution across premier North American department stores, with a focus on higher average unit retail (AUR) and strong sell-throughs.
DKNY Growth: DKNY achieved mid-teen growth, expanding its product offerings in jeans, performance, and sportswear, contributing to over 1,000 new points of sale.
Karl Lagerfeld Expansion: Karl Lagerfeld saw over 20% growth, particularly in North America, with new product launches and an increase in digital penetration.
Vilebrequin Lifestyle Products: Vilebrequin expanded its lifestyle product assortment and launched several creative collaborations, enhancing its status appeal.
Market Share Shift: Calvin Klein and Tommy Hilfiger now represent approximately 34% of total sales, down from over 50% two years ago, with expectations to decline to 25% by the end of fiscal 2026.
International Growth Strategy: G-III's investment in All We Wear Group (AWWG) aims to accelerate international growth, expanding brands like DKNY and Donna Karan across Spain and Portugal.
Operational Efficiency: The retail segment turnaround in North America has cut losses in half, contributing over $15 million to the bottom line.
Supply Chain Optimization: G-III is streamlining its supply chain infrastructure and plans to exit four warehouse facilities by the end of fiscal 2026.
Strategic Focus on Owned Brands: G-III is prioritizing the growth of owned brands, which now represent over half of total net sales, aiming for higher operating margins and licensing income.
Omnichannel Capabilities Enhancement: Investments in technology and infrastructure are being made to support long-term growth and improve digital sales, which grew over 20% this year.
Competitive Pressures: The company anticipates a further decline in sales from Calvin Klein and Tommy Hilfiger brands, which collectively represent approximately 34% of total sales, down from over 50% two years ago. This decline is expected to continue, potentially impacting overall revenue.
Regulatory Issues: The company is facing challenges related to the recently completed 20% tariffs on products sourced from China. Although they believe they can mitigate most of the impact, this remains a significant risk.
Supply Chain Challenges: The company is actively seeking to diversify its sourcing away from China to reduce dependency and potential risks associated with tariffs and geopolitical tensions. They do not have exposure to sourcing from Mexico or Canada.
Economic Factors: The operating environment is described as very challenging, with expectations of an unpredictable environment in the coming year, which could impact sales and profitability.
Licensing Revenue Loss: The expiration of PVH licenses for Calvin Klein jeans and sportswear, which represented approximately $175 million of total revenue in fiscal 2025, is expected to create a significant product void for retailers, potentially impacting future sales.
Growth of Owned Brands: G-III's top priority is driving the growth of owned brands, which now represent over half of total net sales. The company aims to capture global market share and enhance profitability through licensing income.
New Brand Launches: Four new brands were launched, contributing significantly to top-line growth. The relaunch of Donna Karan exceeded expectations, with plans for further expansion in North America and globally.
Investment in AWWG: A 20% investment in All We Wear Group (AWWG) is expected to accelerate international growth, expanding brands like DKNY and Donna Karan in Spain and Portugal.
Omnichannel Capabilities: G-III is enhancing its omnichannel capabilities, investing in technology and infrastructure to support long-term growth and improve digital sales.
Licensing Strategy: The company is expanding its licensing portfolio, with new licenses for Converse and BCBG launching in fall 2025, and expects to maximize profitability from expiring Calvin Klein licenses.
Fiscal 2026 Net Sales Guidance: Expected net sales of approximately $3.14 billion, a decrease of about 1% compared to fiscal 2025.
Fiscal 2026 EPS Guidance: Non-GAAP diluted earnings per share expected between $4.15 and $4.25.
Fiscal 2026 Adjusted EBITDA Guidance: Expected adjusted EBITDA between $310 million and $315 million.
Capital Expenditures Guidance: Estimated capital expenditures of approximately $50 million, primarily for new brand launches and technology.
First Quarter 2026 Guidance: Expected net sales of approximately $580 million, with non-GAAP net income between $2 million and $7 million.
Share Repurchase Program: During the fiscal year 2025, G-III Apparel Group repurchased $60 million of its own shares. The company also mentioned that it will consider opportunistically returning capital to shareholders through stock repurchases.
The earnings call presents mixed signals: strong retail and digital sales growth, particularly in owned brands like Donna Karan and Karl Lagerfeld, contrasts with challenges in the wholesale segment due to expired licenses and tariff impacts. The Q&A reveals management's cautious optimism and strategic focus on owned brands, but also highlights uncertainties in guidance and gross margin recovery. Despite positive trends in certain areas, the lack of specific guidance and tariff pressures suggest a balanced outlook, leading to a neutral sentiment prediction for the stock price.
The earnings call summary reveals several negative indicators: declining gross margins, reduced non-GAAP net income, and increased inventory levels due to tariffs. Although there are positive aspects such as growth in owned brands and a net cash position, the Q&A section highlights management's unclear guidance and challenges with tariffs and brand transitions. The market cap suggests a more pronounced reaction, leading to a likely negative stock price movement of -2% to -8% over the next two weeks.
Despite some positive aspects like improved liquidity and shareholder returns, the company's earnings call highlights several challenges, including supply chain disruptions, regulatory issues, and competitive pressures. The negative impact of exiting a major license business, coupled with weak guidance and uncertain tariff impacts, outweighs the positives. The cautious optimism in consumer spending and the lack of clarity on tariff mitigation further contribute to a negative outlook, likely resulting in a stock price decrease of -2% to -8% over the next two weeks.
The earnings call shows strong financial performance with record EPS growth, improved margins, and a robust cash position. Despite challenges like tariff risks and licensing revenue loss, the company has diversified sourcing and mitigated impacts. The positive outlook is reinforced by raised earnings guidance, successful brand launches, and share repurchases. Analysts' questions revealed confidence in management's strategies. With a market cap of $1.2 billion, the stock is likely to see a positive reaction, driven by strong earnings, optimistic guidance, and strategic initiatives.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
