G III Apparel Group Q1 Sales Down 8%

By Ahmed Jamerson • Friday, June 05 13:02 • Permanent Link

G-III Apparel Group reported first-quarter fiscal 2027 net sales of $536.0 million, down 8% from $583.6 million a year earlier, even as profitability improved sharply.

Net income rose to $66.5 million, or $1.50 per diluted share, from $7.8 million, or $0.17 per diluted share, last year. The company said the quarter included a $77.9 million after-tax benefit tied to the expected recovery of previously incurred tariffs. Excluding that item, non-GAAP net loss was $0.21 per share, compared with non-GAAP net income of $0.19 per share in the prior-year quarter.

Gross margin widened to 64.9% from 42.2%, an increase of 2,270 basis points. Excluding the tariff-related benefit, adjusted gross margin was 45.7%, up 350 basis points from 42.2%.

Cash and cash equivalents climbed to $394.2 million from $257.8 million a year ago. Inventories fell 8% to $417.9 million from $456.5 million.

The company returned $4.2 million to shareholders in dividend payments during the quarter.

For fiscal 2027, G-III now expects net sales of about $2.71 billion, down from $2.96 billion in fiscal 2026, including the loss of roughly $470 million of sales from Calvin Klein and Tommy Hilfiger products. Despite the lower revenue outlook, the company lifted its profit forecast. It now expects net income of $171.0 million to $175.0 million, or $3.85 to $3.95 per diluted share, versus $67.4 million, or $1.51 per diluted share, last year.

Non-GAAP net income is projected at $95.0 million to $99.0 million, or $2.15 to $2.25 per share, compared with $116.2 million, or $2.61 per share, in fiscal 2026. Adjusted EBITDA is expected to be $178.0 million to $182.0 million, down from $192.4 million.

For the second quarter, G-III forecast net sales of about $570.0 million, down from $613.3 million a year earlier. Net income is expected to be $7.0 million to $11.0 million, or $0.15 to $0.25 per share, compared with $10.9 million, or $0.25 per share, last year. Non-GAAP net income is also expected to be $7.0 million to $11.0 million, versus $11.2 million a year ago. As a result of these announcements, the company's shares have moved 7.74% on the market, and are now trading at a price of $34.52. For the full picture, make sure to review G III APPAREL GROUP's 8-K report.

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