G-III Apparel Group (GIII) Q2 2025 earnings summary

Executive summary

• Second quarter net sales were $644.8 million, down 2% year-over-year, but net income and EPS exceeded guidance, driven by strong owned brands, Donna Karan relaunch, and effective cost management.

• Raised full-year earnings outlook and reaffirmed net sales guidance, reflecting confidence in momentum and strategic initiatives.

• Strategic focus on organic growth of owned brands (Donna Karan, DKNY, Karl Lagerfeld, Vilebrequin) and new high-profile licenses, including Converse.

• Expanded global reach through increased investment in AWWG and new distribution partnerships.

• Retail segment sales increased to $37.2 million despite a reduction in store count, driven by higher sales at Karl Lagerfeld Paris stores.

Financial highlights

• Q2 net income was $24.2 million ($0.53 per diluted share), up from $16.4 million ($0.35) last year; non-GAAP EPS was $0.52 vs. $0.40.

• Gross margin rate expanded to 42.8% from 41.9% year-over-year, driven by higher-margin owned brands.

• Operating profit rose to $41.5 million from $31.5 million in the prior year quarter.

• Inventory decreased 24% to $610.5 million, with improved aging and alignment to future sales.

• Cash and cash equivalents stood at $414.8 million as of July 31, 2024.

Outlook and guidance

• Fiscal 2025 net sales expected at $3.2 billion, up 3% year-over-year; guidance unchanged.

• Fiscal 2025 non-GAAP net income expected $180–185 million; non-GAAP EPS $3.95–4.05.

• Adjusted EBITDA for fiscal 2025 expected $305–310 million.

• Q3 net sales expected at $1.1 billion, with non-GAAP EPS of $2.20–$2.30.

• Full-year gross margin rate expected to be similar to fiscal 2024; higher SG&A in second half due to marketing and investments.