G-III Apparel Analysts Increase Their Forecasts After Better-Than-Expected Q2 Results

Core Viewpoint - G-III Apparel Group reported better-than-expected earnings for Q2 but significantly lowered its full-year outlook, indicating weaker future earnings and sales despite surpassing Q2 profit and revenue estimates [1][2]. Financial Performance - The company posted adjusted earnings per share of 25 cents for Q2, exceeding the analyst consensus estimate of 9 cents [1]. - Quarterly sales reached $613.266 million, a 5% decrease year-over-year, but still surpassed the expected $571.312 million [1]. Revised Outlook - G-III Apparel Group revised its fiscal 2026 adjusted EPS outlook to $2.55–$2.75, down from $4.15–$4.25 and below the previous estimate of $2.90 [2]. - The fiscal 2026 sales forecast was reduced to $3.02 billion from $3.14 billion, slightly below the Street consensus of $3.131 billion [2]. Future Projections - The company anticipates third-quarter adjusted EPS in the range of $1.43–$1.63, missing the analyst estimate of $1.88 [2]. - Expected sales for the third quarter are projected at $1.01 billion, below the consensus of $1.10 billion [2]. Management Commentary - Morris Goldfarb, Chairman and CEO, indicated that the updated fiscal 2026 guidance reflects the current macro environment, cautious outlook from retail partners, and the impact of tariffs on financial performance [3]. Stock Performance - Following the earnings announcement, G-III Apparel shares fell by 5.8%, trading at $26.02 [3]. Analyst Ratings - Keybanc analyst maintained an Overweight rating and raised the price target from $30 to $33 [5]. - Telsey Advisory Group maintained a Market Perform rating and increased the price target from $27 to $30 [5]. - Barclays maintained an Underweight rating while raising the price target from $18 to $21 [5].