Core Insights - G-III Apparel Group, Ltd. (GIII) reported first-quarter fiscal 2026 results with net sales decreasing and earnings increasing year over year, surpassing the Zacks Consensus Estimate for both top and bottom lines [1][3][10] Financial Performance - Adjusted earnings per share (EPS) reached 19 cents, exceeding the Zacks Consensus Estimate of 12 cents, and increased by 58.3% from the previous year's adjusted EPS of 12 cents [3][10] - Net sales decreased by 4.3% year over year to $583.6 million, beating the consensus estimate of $580 million [3][10] - Gross profit fell by 4.8% year over year to $246.5 million, with a gross margin decline of 30 basis points to 42.2% [4] - SG&A expenses decreased by 2.2% year over year to $231.5 million, primarily due to lower advertising expenses [5] - Adjusted EBITDA declined by 12.6% year over year to $19.5 million, with an adjusted EBITDA margin decrease of 40 basis points to 3.3% [6] Segment Performance - The wholesale segment reported net sales of $563 million, down from $598 million in the previous year, with a gross margin of 40.4%, down from 40.9% [7] - The retail segment recorded net sales of $36 million, up from $31 million in the prior year, with a gross margin improvement to 53.5% from 47% [8] Guidance and Future Outlook - For fiscal 2026, net sales are expected to be $3.14 billion, a decrease from $3.18 billion in fiscal 2025, with lower sales anticipated in the first half and growth expected in the second half [12] - Projected net sales for the second quarter of fiscal 2026 are approximately $570 million, down from $644.8 million in the prior year, attributed to supply-chain challenges [13] - Net income for the fiscal second quarter is projected to be between $1 million and $6 million, significantly lower than the previous year's net income of $24.2 million [14] Financial Position - G-III Apparel ended the fiscal first quarter with cash and cash equivalents of $257.8 million and total debt of $18.7 million, with total stockholders' equity at $1.68 billion [11]