G-III Apparel (US:GIII) ZACKS·2025-12-09 18:25Core 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]