G III Apparel Group Q1 Sales Drop 8%, Net Income Soars

By Bobby Samwell • Friday, June 05 16:05 • 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, while net income jumped to $66.5 million, or $1.50 per diluted share, from $7.8 million, or $0.17 per share.

Gross margin widened sharply to 64.9% from 42.2%, a gain of 2,270 basis points. Excluding a $102.7 million pre-tax tariff recovery benefit, adjusted gross margin was 45.7%, up 350 basis points from 42.2%.

The company’s non-GAAP net loss per share was ($0.21), compared with non-GAAP net income of $0.19 per diluted share in the prior-year quarter.

Cash and cash equivalents rose to $394.2 million from $257.8 million a year ago, an increase of $136.4 million. Inventories fell 8% to $417.9 million from $456.5 million. G-III paid $4.2 million in dividends 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, reflecting the expected loss of roughly $470 million in Calvin Klein and Tommy Hilfiger sales. Full-year net income is now projected at $171.0 million to $175.0 million, or $3.85 to $3.95 per diluted share, up from $67.4 million, or $1.51 per share, last year.

Non-GAAP net income for fiscal 2027 is expected to be $95.0 million to $99.0 million, down from $116.2 million in fiscal 2026, while adjusted EBITDA is forecast at $178.0 million to $182.0 million versus $192.4 million last year.

For the second quarter, G-III expects net sales of about $570.0 million, down from $613.3 million a year ago. Net income is projected at $7.0 million to $11.0 million, versus $10.9 million last year, with diluted earnings per share of $0.15 to $0.25 compared with $0.25. Non-GAAP net income is also expected at $7.0 million to $11.0 million, versus $11.2 million a year earlier. Following these announcements, the company's shares moved 4.48%, and are now trading at a price of $33.475. For the full picture, make sure to review G III APPAREL GROUP's 8-K report.

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