G-III Apparel Group (GIII) Q3 2025 earnings summary

Executive summary

• Third quarter net sales rose 1.8% year-over-year to $1.09 billion, driven by over 30% growth in DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin, despite declines in Calvin Klein and Tommy Hilfiger and challenging weather and supply chain disruptions.

• Retail operations net sales increased to $42.3 million from $32.7 million, with high double-digit comp sales at Karl Lagerfeld Paris and DKNY stores, despite a reduction in store count.

• Marketing investments increased consumer engagement, boosting traffic and conversion rates in direct-to-consumer channels.

• Strategic transformation continues, focusing on owned brands, international expansion, and a diversified license portfolio.

• Inventory levels decreased 10% year-over-year, and total debt was reduced by 52% following a $400 million note redemption.

Financial highlights

• GAAP earnings per diluted share for Q3 was $2.59, and non-GAAP EPS was $2.59, both above expectations but down from last year.

• Net sales for Q3 were $1.09 billion, up from $1.07 billion year-over-year.

• Gross profit for the quarter was $432.1 million (39.8% of net sales), down from 40.6% last year, but above expectations.

• Non-GAAP net income for Q3 was $116.3 million, compared to $129.6 million last year.

• Interest and financing charges dropped to $6.4 million from $11.0 million, reflecting the redemption of $400 million in Senior Secured Notes.

Outlook and guidance

• Fiscal 2025 net sales guidance updated to $3.15 billion, representing 2% growth year-over-year.

• Full-year non-GAAP EPS guidance raised to $4.10–$4.20; GAAP net income guidance raised to $185–$190 million.

• Fiscal 2025 non-GAAP net income expected between $186–$191 million; adjusted EBITDA expected between $309–$314 million.

• Gross margin rate expansion expected for fiscal 2025, driven by owned brands.

• Incremental expenses for brand launches and marketing expected to be ~$55 million, mainly for Donna Karan and DKNY.