G-III Apparel Group (GIII) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a pivotal year with strategic transformation, focusing on owned brands and exiting Calvin Klein and Tommy Hilfiger licenses, resulting in net sales of $2.96 billion, down 7% year-over-year.

• Key owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin) delivered mid-single-digit growth, now nearly 60% of revenue.

• Investments in infrastructure, technology, and talent supported growth and improved operational efficiency.

• Year-end cash stood at $407 million, with over $50 million returned to shareholders in fiscal 2026.

• Initiated a $25 million run-rate cost savings initiative.

Financial highlights

• Q4 net sales: $771 million (down 8% YoY); full year net sales: $2.96 billion (down from $3.18 billion YoY).

• Q4 non-GAAP EPS: $0.30 (impacted by $0.30 Saks bankruptcy charge); full year non-GAAP EPS: $2.61.

• Q4 gross margin: 37% (down from 39.5% YoY); full year gross margin: 39.4% (down from 40.8% YoY), mainly due to tariffs.

• Full year non-GAAP net income: $116 million (down from $204 million YoY); GAAP net income: $67.4 million.

• Adjusted EBITDA for fiscal 2026 was $192.4 million.

Outlook and guidance

• Fiscal 2027 net sales expected at $2.71 billion, reflecting $470 million reduction from expiring PVH licenses.

• Fiscal 2027 net income projected between $88 million and $92 million, or $2.00–$2.10 per diluted share.

• Adjusted EBITDA expected between $158 million and $162 million (down from $192 million in fiscal 2026).

• Q1 2027 net sales expected at $530 million, with a net loss of $13–18 million.

• Gross margin improvement of up to 300 basis points expected for fiscal 2027.