G-III Apparel Group, Ltd. has released its financial results for the first quarter of fiscal 2026, showing stronger performance than expected.
Q1 Financial Results
G-III Apparel Group reported a net income per diluted share of $0.17, exceeding last year's figure of $0.12 and market expectations of $0.12. On a non-GAAP basis, the net income per diluted share reached $0.19. Net sales for the quarter amounted to $583.6 million, slightly above the expected revenue of $580.2 million, yet down 4% compared to $609.7 million in the same quarter last year. Profitability improved due to strong performances from key owned brands such as DKNY, Karl Lagerfeld, and Donna Karan.
Future Quarter Outlook
G-III Apparel Group has reaffirmed its net sales guidance for fiscal 2026, anticipating net sales of approximately $3.14 billion, down from $3.18 billion in fiscal 2025. Sales in the first half of fiscal 2026 are expected to be lower than the previous year, but acceleration is anticipated in the latter half. The company has withdrawn its guidance for net income and non-GAAP net income due to uncertainties surrounding tariffs and macroeconomic conditions.
Company Strategy Amid Challenges
Key strategies to mitigate tariff impacts include diversifying sourcing, vendor discounts, selective price increases, and other cost-saving initiatives. For the second quarter ending July 31, 2025, G-III forecasts net sales of approximately $570 million, with expected net income ranging between $1 million and $6 million.
Despite these challenges, G-III Apparel Group remains confident in its strategic priorities and the growth potential of its brands, aiming to drive long-term profitability and shareholder value.
