Core Viewpoint - G-III Apparel Group reported mixed third-quarter fiscal 2026 results, with net sales missing estimates while earnings per share exceeded expectations, leading to a revised positive outlook for the fiscal year despite ongoing tariff pressures [2][3]. 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 same quarter last year [5]. - Net sales decreased by 9% year over year to $988.6 million, falling short of the consensus estimate of $1,011 million [5]. - Gross profit declined 11.7% year over year to $381.5 million, with gross margin decreasing by 120 basis points to 38.6% [6]. - Adjusted EBITDA fell 28.4% year over year to $124.9 million, with the adjusted EBITDA margin down 340 basis points to 12.6% [7]. Financial Position - As of the end of the fiscal third quarter, G-III Apparel had cash and cash equivalents of $184.1 million and total debt of $10.6 million, with total stockholders' equity at $1.79 billion [8]. - Inventory increased by 3% year over year to $547.1 million [8]. 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 [10][11]. - Adjusted net income is expected to be between $125 million and $130 million, with adjusted EPS forecasted at $2.80 to $2.90 [12]. - The projected gross tariff impact is now $135 million, with $65 million expected to remain unmitigated [9]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 16.18% [14]. - G-III Apparel currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].