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Apr 30, 2025
G-III Apparel Q1 2026 Earnings Report
G-III Apparel reported Q1 2026 earnings with EPS and net income exceeding guidance despite a drop in revenue.
Key Takeaways
G-III Apparel delivered solid first-quarter results driven by growth in owned brands like DKNY and Karl Lagerfeld, which offset headwinds from exiting Calvin Klein lines. EPS and net income beat expectations, though revenue fell year-over-year.
Net income rose to $7.8 million, up from $5.8 million the previous year.
EPS reached $0.17, while non-GAAP EPS came in at $0.19.
Revenue declined to $583.6 million from $609.7 million year-over-year.
Double-digit growth in DKNY, Karl Lagerfeld, and Donna Karan helped offset revenue pressures.
Forward Guidance
G-III reaffirmed full-year sales guidance of $3.14 billion but withdrew profit guidance due to tariff-related uncertainties. Q2 sales are expected to decline due to supply chain disruptions.
Positive Outlook
- Reaffirmed net sales forecast for fiscal 2026 at $3.14 billion.
- Expected sales acceleration in second half of fiscal 2026.
- Gross margins projected to remain stable in Q2.
- Management is executing cost-saving and sourcing diversification initiatives.
- Strong growth momentum from owned brands expected to continue.
Challenges Ahead
- Q2 revenue expected to decline from $644.8M to $570M.
- Tariffs expected to increase costs by $135 million.
- Profitability guidance withdrawn due to uncertainty.
- Supply chain challenges impacting Q2 revenue timing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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