G-III Apparel Group (GIII) Q2 2026 earnings summary

Executive summary

• Q2 FY26 net sales were $613.3M, down 4.9–5% YoY but exceeded guidance, with GAAP EPS at $0.25, also above expectations.

• Growth was driven by owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin), while Calvin Klein and Tommy Hilfiger licenses are expiring.

• Inventory levels rose 5% YoY to $639.8M, with net cash at $286M and cash/cash equivalents at $301.8M.

• Strategic focus on scaling owned brands, optimizing supply chain, and mitigating tariff and license expiration impacts.

• Operating cash flow for the six months was $168.9M, up from $94.8M YoY, driven by working capital changes.

Financial highlights

• Q2 net sales: $613.3M (down from $644.8M YoY); retail segment sales rose to $41.1M from $37M.

• Gross margin: 40.8% (down from 42.8% YoY), impacted by tariffs and product mix.

• Non-GAAP net income: $11M ($0.25 per diluted share), down from $24M ($0.52) YoY.

• Adjusted EBITDA for FY26 expected at $198M–$208M, down from $325M in FY25.

• Inventory at $640M, up 5% YoY; net cash position of $286M.

Outlook and guidance

• FY26 net sales expected at ~$3.02B, down from $3.18B in FY25, reflecting license expirations, cautious retail orders, and tariff impacts.

• Non-GAAP net income forecasted at $113M–$123M (EPS $2.55–$2.75), down from $204M (EPS $4.42) in FY25.

• Adjusted EBITDA expected at $198M–$208M, down from $325M in FY25.

• Gross margin rate for FY26 expected to decline ~300 bps; majority of tariff impact in H2.

• Key owned brands projected to grow mid-single digits in FY26.