G‑III Apparel Group reported fourth‑quarter and full‑year fiscal 2026 results on March 12, 2026. Net sales for the quarter fell 8.1% to $771.5 million from $839.5 million a year earlier, and the company posted a GAAP net loss of $31.9 million, or $0.76 per share. In contrast, the prior‑year quarter generated a net income of $48.8 million, or $1.07 per share. For the full year ending January 31, 2026, net sales were $2.96 billion, down 7.0% from $3.18 billion, and net income was $67.4 million, or $1.51 per share, compared with $193.6 million, or $4.20 per share, in 2025.
The results were heavily impacted by one‑time charges. G‑III recorded a $46.1 million non‑cash asset impairment charge and a $17.5 million bad‑debt expense related to the bankruptcy of Saks Global. These items contributed to the GAAP loss and to a non‑GAAP earnings per share of $0.30, which missed the consensus estimate of $0.57 by roughly $0.27. Revenue also missed expectations, with $771.5 million reported versus an estimate of $791.98 million, a shortfall of about $20.5 million.
The company’s portfolio transition is a key driver of the year‑end performance. G‑III exited the Calvin Klein and Tommy Hilfiger license agreements, losing $470 million in sales, but it is focusing on its owned brands—DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin—whose sales grew at a high‑single‑digit pace. CEO Morris Goldfarb said the firm is “building on the momentum of our go‑forward portfolio, which we expect to deliver high‑single‑digit growth for the year, helping to offset the significant lost sales as we exit the Calvin Klein and Tommy Hilfiger businesses.” The company also highlighted a $25 million run‑rate cost‑savings program expected to deliver benefits by fiscal 2028 and a cash balance of more than $400 million at year‑end.
Investors reacted negatively to the earnings miss and the weak guidance, citing the impact of the Saks Global bankruptcy, tariff pressures, and the loss of the Calvin Klein and Tommy Hilfiger brands. Management emphasized that the company is working to expand gross margins while streamlining its cost structure to unlock productivity and profitability across the business.
For fiscal 2027, G‑III projected net sales of approximately $2.71 billion, net income of $88.0 million to $92.0 million, diluted earnings per share of $2.00 to $2.10, and adjusted EBITDA of $158.0 million to $162.0 million. These guidance figures are lower than the consensus estimate of roughly $2.99 per share, reflecting continued pressure from the portfolio transition but confidence in the growth of owned brands.
The company remains focused on strengthening its balance sheet, executing its cost‑savings plan, and driving growth in its owned‑brand portfolio. While the fiscal 2026 results show a sharp decline in earnings, the guidance signals a cautious but steady outlook as G‑III navigates the transition away from legacy licensed brands and continues to invest in margin expansion and operational efficiency.
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