Core Viewpoint - G-III Apparel Group Ltd reported better-than-expected third-quarter adjusted EPS results and raised its FY26 adjusted EPS guidance despite facing challenges in the consumer environment and tariff-related margin pressures [1][2]. Financial Performance - The company reported third-quarter adjusted earnings per share of $1.90, exceeding the analyst consensus estimate of $1.61 [1]. - Quarterly sales amounted to $988.649 million, which is a 9% decrease year over year and fell short of the expected $1.012 billion [1]. Guidance Update - G-III Apparel raised its fiscal 2026 adjusted EPS guidance from a range of $2.55-$2.75 to $2.80-$2.90, compared to the previous estimate of $2.68 [4]. - The company lowered its fiscal 2026 sales guidance from $3.020 billion to $2.980 billion, aligning with the previous estimate of $3.020 billion [4]. Market Reaction - Following the earnings announcement, G-III Apparel shares increased by 1.8%, trading at $31.36 [4]. - Analysts adjusted their price targets for G-III Apparel, with Telsey Advisory Group raising it from $30 to $34, Keybanc from $33 to $35, and UBS from $28 to $32 [5]. Tariff Impact - The company anticipates tariffs to have a gross impact of approximately $135 million, which will be partially offset by supplier support, sourcing changes, and selective price increases, resulting in a net unmitigated impact of about $65 million factored into the guidance [3].

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Core Viewpoint - G-III Apparel Group, Ltd. is navigating challenges in the apparel industry through strategic brand management and tariff-mitigation strategies, positioning itself for future growth despite mixed financial results [2][3][5]. Financial Performance - G-III Apparel reported a decline in net sales year-over-year but exceeded earnings per share (EPS) estimates, driven by strong performance in owned brands and a robust full-price sales mix [2][6]. - The company has raised its fiscal year 2026 earnings guidance, reflecting resilience and strategic adaptability in response to market pressures [3][5][6]. Market Position - The current stock price of G-III Apparel is $30.80, with a recent increase of 3.81% and a market capitalization of approximately $1.34 billion [4]. - BTIG has set a price target of $34 for G-III Apparel, indicating a potential upside of about 10.39% from the current trading price [2][6]. Stock Performance - G-III Apparel's stock has fluctuated between a low of $30.56 and a high of $34.83 in recent trading, with a yearly high of $36.18 and a low of $20.33 [4]. - The trading volume of 721,911 shares indicates active investor interest in the company's stock [4].

Core Insights - G-III Apparel Group, Ltd. is a significant player in the textile and apparel industry, known for its diverse portfolio of owned and licensed brands, including outerwear, dresses, sportswear, and accessories [1] Financial Performance - In Q3 2026, GIII reported earnings per share of $1.9, exceeding the Zacks Consensus Estimate of $1.6 per share, resulting in an 18.75% earnings surprise [2] - Despite the positive earnings surprise, earnings per share decreased from $2.59 in the same quarter last year, indicating a decline in profitability [2] - Revenues for the quarter ended October 2025 were $988.65 million, falling short of the Zacks Consensus Estimate by 2.25% and down from $1.09 billion reported a year ago [3] - The company has exceeded consensus revenue estimates in three of the last four quarters, demonstrating its ability to outperform expectations consistently [3] Shareholder Value Initiatives - GIII has introduced its first-ever quarterly dividend program, starting with an initial dividend of $0.10 per share, reflecting confidence in its financial stability and commitment to returning value to shareholders [4][5] - The company's low debt-to-equity ratio of approximately 0.006 underscores its strong financial position, providing a solid foundation for future growth [4]

Sales Performance - Net sales of Calvin Klein and Tommy Hilfiger licensed products decreased by $188.4 million in fiscal 2025, offset by a $254.4 million increase in net sales of DKNY, Karl Lagerfeld, and Donna Karan products [100]. - Approximately 34.0% of net sales in fiscal 2025 were from Calvin Klein and Tommy Hilfiger brands, down from 41.0% in fiscal 2024 [100]. - Net sales for the three months ended October 31, 2025 decreased to $988.6 million from $1.09 billion in the same period last year, representing a decline of approximately 9.2% [115]. - Net sales of the wholesale operations segment decreased to $977.3 million for the three months ended October 31, 2025 from $1.07 billion, primarily due to a decrease of $122.5 million in Calvin Klein and Tommy Hilfiger licensed products [116]. - Net sales for the nine months ended October 31, 2025 decreased to $2.19 billion from $2.34 billion, a decline of approximately 6.4% [124]. - Net sales of the wholesale operations segment decreased to $2.13 billion for the nine months ended October 31, 2025 from $2.28 billion, driven by a decrease of $209.4 million in Calvin Klein and Tommy Hilfiger licensed products [125]. Retail Operations - As of October 31, 2025, the retail operations segment consisted of 47 company-operated stores, primarily outlet stores in North America [91]. - The number of retail stores operated decreased from 51 at October 31, 2024 to 47 at October 31, 2025, while retail operations segment sales increased to $45.7 million from $42.3 million [117]. - The retail operations segment includes direct sales through company-operated stores and digital sites for several brands, enhancing the company's digital footprint [91]. Cost and Profitability - Gross profit for the three months ended October 31, 2025 was $381.5 million, or 38.6% of net sales, compared to $432.1 million, or 39.8% of net sales in the same period last year [118]. - Gross profit for the nine months ended October 31, 2025 was $878.5 million, or 40.2% of net sales, compared to $966.9 million, or 41.3% of net sales in the same period last year [127]. - Selling, general and administrative expenses increased to $260.4 million in the three months ended October 31, 2025 from $259.2 million in the same period last year [119]. - Selling, general and administrative expenses decreased to $718.8 million for the nine months ended October 31, 2025, from $724.9 million in the same period last year, primarily due to a $12.9 million decrease in compensation expenses and an $8.5 million decrease in advertising expenses [128]. Tax and Financing - The effective tax rate increased to 29.0% for the three months ended October 31, 2025 from 28.7% in the same period last year [123]. - Interest and financing charges, net, decreased to $0.2 million for the three months ended October 31, 2025 from $6.4 million in the same period last year [122]. - Interest and financing charges, net, significantly decreased to $0.4 million for the nine months ended October 31, 2025, from $16.7 million in the same period last year, primarily due to a $19.3 million decrease in interest charges following the redemption of $400 million in Senior Secured Notes [132]. - Income tax expense was $41.6 million for the nine months ended October 31, 2025, down from $57.9 million in the same period last year, with an effective tax rate increase to 29.5% from 28.6% [133]. Cash Flow and Investments - As of October 31, 2025, the company had cash and cash equivalents of $184.1 million and availability under its revolving credit facility of approximately $700 million [135]. - Cash generated from operating activities was $71.6 million during the nine months ended October 31, 2025, primarily due to net income of $99.3 million and increases in accounts payable and accrued expenses [153]. - The company used $28.3 million in cash for investing activities during the nine months ended October 31, 2025, with $27.5 million in capital expenditures related to leasehold improvements and computer software [157]. - Net cash used by financing activities was $51.2 million during the nine months ended October 31, 2025, primarily due to $49.8 million used for share repurchases [158]. Share Repurchase and Stock - The company repurchased 2,158,276 shares of common stock for an aggregate purchase price of $49.8 million during the nine months ended October 31, 2025, with 5,631,892 shares remaining authorized for purchase [152]. - The company repurchased 2,158,276 shares of common stock under its share repurchase program, excluding excise tax [158]. - Taxes paid in connection with net share settlements of stock grants that vested amounted to $5.0 million [158]. Strategic Initiatives - The company aims to expand its product offerings through new licensing agreements and acquisitions, including recent agreements for Nautica, Halston, Champion, Converse, and BCBG brands [99]. - The company has a diverse portfolio of over 30 globally recognized brands, including DKNY, Donna Karan, and Karl Lagerfeld, across various lifestyle categories [82]. - The company is taking steps to mitigate the impact of new tariffs by working with vendors to share increased costs and exploring alternative sourcing options [94]. - Approximately 76% of products were sourced from China, Vietnam, and Indonesia during fiscal 2025, amid increasing tariffs on imports [92]. - The company reported a significant increase in digital sales initiatives to adapt to changing consumer preferences and enhance online presence [96]. - The company recognizes the importance of maintaining relationships with licensors, as the expiration of key licenses could significantly impact net sales [101]. Accounting Policies - There have been no material changes to the critical accounting policies as of October 31, 2025 [160]. - The accounting policies rely on management's judgments and estimates, which may lead to materially different outcomes from forecasts [159]. - There are no material changes to the market risk disclosures from the Annual Report for the year ended January 31, 2025 [161].

Core Insights - G-III Apparel Group, Ltd. reported third-quarter fiscal 2026 results with net sales missing estimates while earnings per share exceeded expectations, reflecting a year-over-year decline in both metrics [1][4][9] Financial Performance - Adjusted earnings per share (EPS) for the third quarter were $1.90, surpassing the Zacks Consensus Estimate of $1.60, but down 26.6% from $2.59 in the prior year [4] - Net sales fell 9% year over year to $988.6 million, below the consensus estimate of $1,011 million [4] - Gross profit decreased 11.7% year over year to $381.5 million, with gross margin declining 120 basis points to 38.6% [5] - Adjusted EBITDA declined 28.4% year over year to $124.9 million, with the adjusted EBITDA margin down 340 basis points to 12.6% [6] Brand and Operational Insights - The fiscal third-quarter results were influenced by the performance of the brand portfolio, particularly owned brands, and a strong full-price sales mix [2] - The company has raised its fiscal 2026 earnings guidance despite ongoing consumer uncertainty and tariff-related margin pressures [2][9] Financial Position - As of the end of the fiscal third quarter, G-III Apparel had cash and cash equivalents of $184.1 million, total debt of $10.6 million, and total stockholders' equity of $1.79 billion [7] - Inventory increased 3% year over year to $547.1 million [7] - The company repurchased 209,851 shares for $5.4 million during the fiscal third quarter [7] Fiscal 2026 Guidance - The company revised its fiscal 2026 guidance, projecting net sales of $2.98 billion, down from a previous estimate of $3.02 billion, and net income between $121 million and $126 million [8][10] - Adjusted earnings per share are now forecasted to be between $2.80 and $2.90, an increase from the earlier range of $2.55 to $2.75 [11] - Adjusted EBITDA for fiscal 2026 is expected to be between $208 million and $213 million, compared to the prior estimate of $198 million to $208 million [12]

Financial Data and Key Metrics Changes - Net sales for the third quarter were $989 million, down from $1.09 billion in the same period last year, generally in line with expectations [28] - Non-GAAP earnings per diluted share were $1.90, compared to $2.59 in the previous year, exceeding expectations [30] - Gross margins were 38.6%, down from 39.8% in the previous year's third quarter, primarily due to tariffs [29] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $977 million, down from $1.07 billion last year, mainly due to lower sales from Calvin Klein and Tommy Hilfiger licensed businesses [28] - Retail segment net sales increased to $46 million from $42 million, driven by solid comp sales increases across North American DKNY and Karl Lagerfeld stores [28] - Donna Karan is expected to grow by 40% in fiscal 2026, reflecting strong consumer demand and pricing power [10] Market Data and Key Metrics Changes - North America saw double-digit growth compared to last year, while Europe posted high single-digit growth [6] - Digital traffic increased over 20% across owned dot-com, contributing to substantial growth in conversion rates and overall sales [6] - The company experienced robust digital performance across North America and Europe, with nearly 20% growth in digital sales [22] Company Strategy and Development Direction - The company is focused on driving both near and long-term growth through brand strength, technology investments, and enhancing direct-to-consumer capabilities [8][9] - Strategic priorities include expanding owned brands, international expansion, and category expansion through licensing [9][10] - The company plans to grow mid-single digits this year for key owned brands like DKNY, Donna Karan, and Karl Lagerfeld [31] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the global consumer environment but is optimistic about holiday performance and spring sell-in [8] - The company is taking a prudent approach to its outlook for the remainder of the year, adjusting guidance to reflect third-quarter earnings outperformance [26] - Management expressed confidence in the ability to sustain long-term success despite challenges from tariffs and the exit from PVH licenses [25] Other Important Information - The company ended the quarter with a net cash position of $174 million after repurchasing approximately $50 million in stock year-to-date [30] - A new dividend program has been introduced, with an initial quarterly cash dividend of $0.10 per share [31] - The gross impact of tariffs is estimated to be approximately $135 million, with an unmitigated impact of about $65 million for fiscal 2026 [32] Q&A Session Summary Question: Can you unpack the gross margin performance? - Management indicated that gross margins were better than expected due to strong full-price selling, despite the impact of tariffs [40][41] Question: What are the preliminary thoughts around the top line or bottom line goals for next year? - Management is exploring various strategic options, including acquisitions and new licenses, but is not in a rush to make decisions [48][49] Question: How has the order trend been changing for your own brands? - Management noted significantly higher demand at the full-price channel, with strong sell-throughs across all brands [76] Question: What are the opportunities for growth in owned brands like Donna Karan? - Management highlighted the potential for growth in dresses, sportswear, and handbags, with a focus on expanding distribution [81]

Financial Data and Key Metrics Changes - Net sales for the third quarter were $989 million, down from $1.09 billion in the same period last year, generally in line with expectations [27] - Non-GAAP earnings per diluted share were $1.90, compared to $2.59 in the previous year, exceeding the midpoint of guidance by $0.37 [6][29] - Gross margins were 38.6%, down from 39.8% in the previous year's third quarter, primarily due to tariffs [28] - The company ended the quarter with a net cash position of $174 million, compared to a net debt position of $119 million in the same period last year [29] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $977 million, down from $1.07 billion last year, mainly due to lower sales from Calvin Klein and Tommy Hilfiger licensed businesses [27] - Retail segment net sales increased to $46 million from $42 million, driven by solid comp sales increases across North American DKNY and Karl Lagerfeld stores [27] - Donna Karan is expected to grow by 40% in fiscal 2026, reflecting strong consumer demand and pricing power [9][56] Market Data and Key Metrics Changes - North America saw double-digit growth compared to last year, while Europe posted high single-digit growth during the Black Friday period [5] - Digital traffic increased over 20% across owned dot-com, leading to substantial growth in conversion rates and overall sales [5][21] - The company experienced robust digital performance across North America and Europe, with nearly 20% growth in digital sales [20][21] Company Strategy and Development Direction - The company is focused on driving both near and long-term growth through brand strength, direct-to-consumer initiatives, international expansion, and category expansion through licensing [7][8] - Strategic investments in technology, infrastructure, and talent are prioritized to enhance business efficiency [7] - The company aims to capture long-term potential of owned brands, which are seen as sustainable drivers of profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through a dynamic marketplace, despite challenges from tariffs and the exit of PVH licenses [3][4] - The company is taking a prudent approach to its outlook for the remainder of the year, mindful of the global consumer environment [5] - Fiscal 2026 guidance was updated to expect net sales of approximately $2.98 billion and non-GAAP earnings per diluted share of $2.80-$2.90 [26][30] Other Important Information - The company introduced its first-ever dividend program, declaring an initial quarterly cash dividend of $0.10 per share [30] - The gross impact of tariffs is estimated to be approximately $135 million, with an unmitigated impact of about $65 million for fiscal 2026 [31] - The company is redeploying talent and resources to accelerate growth in its go-forward brands as it winds down PVH licenses [23] Q&A Session Summary Question: Can you unpack the gross margin performance? - Management indicated that gross margins were better than expected due to strong full-price selling, despite the impact of tariffs [40][41] Question: What are the preliminary thoughts around the top line or bottom line goals for next year? - Management mentioned that they are exploring various strategic opportunities, including acquisitions and licenses, but are not in a rush [47] Question: How has the order trend been changing for your own brands? - Management noted that demand was significantly higher at the full-price channel, with strong sell-throughs across all brands [75] Question: What are the priority levers to keep momentum for owned brands like Donna Karan? - Management highlighted the importance of repeat customers and expanding distribution in premium department stores as key growth drivers [56][80]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $989 million, down from $1.09 billion in the same period last year, generally in line with expectations [27] - Non-GAAP earnings per diluted share were $1.90, compared to $2.59 in the previous year, significantly better than expectations [30] - Gross margins were 38.6%, down from 39.8% in the previous year's third quarter, primarily due to tariffs [29] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $977 million, down from $1.07 billion last year, mainly due to lower sales from Calvin Klein and Tommy Hilfiger licensed businesses [28] - Retail segment net sales increased to $46 million from $42 million, driven by solid comp sales increases across North American DKNY and Karl Lagerfeld stores [28] - Donna Karan is expected to grow by 40% in fiscal 2026, with strong performance in North America and significant traffic increases on its website [10][12] Market Data and Key Metrics Changes - North America saw double-digit growth compared to last year, while Europe posted high single-digit growth [6] - Digital sales grew nearly 20%, with Donna Karan showing particularly strong performance [22] - The licensed team sports business delivered a solid quarter with sales up 9%, supported by a strong NFL season [23] Company Strategy and Development Direction - The company is focused on driving both near and long-term growth, with a core focus on building brand strength and enhancing digital capabilities [8][9] - Strategic investments in technology, infrastructure, and talent are prioritized to improve efficiency and capture market share [8] - The company aims to expand its owned brands internationally and through licensing, with a focus on higher-margin products [10][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through a challenging marketplace, highlighting strong consumer demand and effective inventory management [4][5] - The company updated its fiscal 2026 guidance, expecting net sales of approximately $2.98 billion and non-GAAP earnings per diluted share between $2.80 and $2.90 [26][33] - Management acknowledged the impact of tariffs but indicated that gross margins are expected to normalize and expand in the future [32] Other Important Information - The company ended the quarter with a net cash position of $174 million after repurchasing approximately $50 million in stock year-to-date [30] - A new dividend program was introduced, with an initial quarterly cash dividend of $0.10 per share [31] Q&A Session Summary Question: Can you unpack the gross margin performance? - Management indicated that gross margins were better than expected due to strong full-price selling, despite the impact of tariffs [35][37] Question: Will the company be able to fully mitigate the tariff situation next year? - Management stated it is early to say if all impacts will be mitigated but expressed intent to adjust pricing to achieve normal margins [38][39] Question: How is the performance of the Nautica and other licensed brands? - Nautica is growing nicely, and initial efforts with Halston and BCBG are showing improvement, with potential for significant future growth [49][51] Question: What are the priorities for maintaining momentum for owned brands like Donna Karan? - Management emphasized the importance of customer satisfaction and repeat purchases, with a focus on expanding distribution and product offerings [46][59] Question: How have order trends changed for the wholesale channel? - Order trends have improved significantly, with higher demand for full-price retail, particularly in coats and dresses across all brands [56][57]

分组1 - G-III Apparel Group reported quarterly earnings of $1.9 per share, exceeding the Zacks Consensus Estimate of $1.6 per share, but down from $2.59 per share a year ago, representing an earnings surprise of +18.75% [1] - The company posted revenues of $988.65 million for the quarter ended October 2025, missing the Zacks Consensus Estimate by 2.25%, and down from $1.09 billion year-over-year [2] - G-III Apparel has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed, losing about 9% since the beginning of the year, while the S&P 500 has gained 16.4% [3] - The current consensus EPS estimate for the coming quarter is $0.68 on revenues of $813.8 million, and for the current fiscal year, it is $2.71 on revenues of $3.02 billion [7] - The Zacks Industry Rank for Textile - Apparel is in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]