Key Takeaways Crocs is driving growth through core clogs, sandals, personalization and refreshed silhouettes.CROX benefits from strong DTC performance, digital investments and disciplined pricing strategy.HEYDUDE faces near-term pressure, but product refreshes aim to restore brand momentum.Crocs, Inc. (CROX) ranks among the world’s most recognizable footwear brands, known for its distinctive style and comfort. From a brand fundamentals perspective, Crocs has successfully transformed from a functional niche ...

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]

G-III Apparel Group (NasdaqGS:GIII) Q3 2026 Earnings Call December 09, 2025 08:30 AM ET Speaker1Ladies and gentlemen, thank you for standing by. Welcome to G-III Apparel Group Third Quarter Fiscal 2026 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. ...

G-III Apparel Group’s rebound strategy is paying dividends — or at least it’s about to. While the company continues to work through the transition of the Calvin Klein and Tommy Hilfiger licenses back to PVH Corp. — and feels the pain of that on the top line — Morris Goldfarb, chairman and chief executive officer, has solidified the group’s financial profile. More from WWD Third-quarter earnings were down, but well ahead of analysts’ estimates, the company has cut its debt load by 95 percent from a year a ...

Core Insights - G-III Apparel Group reported strong third-quarter results for fiscal 2026, with gross margins and earnings exceeding expectations, driven by a robust portfolio and effective tariff mitigation strategies [2][3] - The company has raised its fiscal 2026 earnings guidance, reflecting third-quarter performance while acknowledging uncertainties in the consumer environment and tariff impacts [2][9] Financial Performance - Net sales for the third quarter decreased by 9% to $988.6 million compared to $1.09 billion in the same quarter last year [3] - Net income for the third quarter was $80.6 million, or $1.84 per diluted share, down from $114.8 million, or $2.55 per diluted share, in the prior year [3][7] - Non-GAAP net income per diluted share was $1.90, compared to $2.59 in the same period last year [4][7] Balance Sheet Highlights - Inventories increased by 3% to $547.1 million from $532.5 million year-over-year [5] - Total debt decreased significantly by 95% to $10.6 million from $224.2 million, resulting in a net cash position of $173.5 million compared to a net debt position of $119.5 million last year [5][19] Capital Allocation - The company repurchased 209,851 shares for $5.4 million in the third quarter and 2,158,276 shares for $49.8 million year-to-date [6] - G-III announced a new quarterly dividend program, declaring an initial cash dividend of $0.10 per share, to be paid on December 29, 2025 [6][8] Outlook - The company updated its fiscal 2026 guidance, projecting net sales of approximately $2.98 billion, down from previous guidance of $3.02 billion, and net income between $121.0 million and $126.0 million [10][11] - Non-GAAP net income for fiscal 2026 is expected to be between $125.0 million and $130.0 million, with diluted earnings per share guidance raised to between $2.80 and $2.90 [11][28]

Core Insights - Ralph Lauren Corporation (RL) and G-III Apparel Group, Ltd. (GIII) represent contrasting strategies in the apparel industry, with RL focusing on luxury and brand equity while GIII is transitioning towards owned brands and operational efficiency [1][3]. Ralph Lauren (RL) - RL benefits from a fully integrated consumer ecosystem, a strong balance sheet, and a strategy aimed at elevating its position in the premium and luxury markets [2]. - The company is experiencing strong momentum, with double-digit revenue growth across all geographies and categories, particularly in women's apparel and handbags [5]. - RL's core categories, which account for over 70% of revenues, are showing mid-teens growth, indicating the strength of its timeless assortments [5]. - For fiscal 2026, RL anticipates constant-currency revenue growth of 5-7% and operating margin expansion of 60-80 basis points [7]. - The Zacks Consensus Estimate for RL's fiscal 2026 sales and EPS suggests year-over-year growth of 9.5% and 24.9%, respectively [12]. - RL's shares have outperformed in the past three months, with a total return of 15.5% [14]. - The company trades at a higher forward price-to-earnings (P/E) multiple of 21.82X, reflecting its focus on digital transformation and product diversification [15][16]. G-III Apparel (GIII) - GIII is focusing on scaling its owned brands and optimizing distribution channels while navigating challenges from exiting major licenses and tariff pressures [10][11]. - In the second quarter of fiscal 2026, GIII reported net sales of $613 million, despite a year-over-year decline due to the exit from Calvin Klein and Tommy Hilfiger licenses [9]. - GIII's fiscal 2026 revenues are expected to be $3.02 billion, down from $3.18 billion in fiscal 2025, with an adjusted EPS of $2.55-$2.75 indicating a roughly 40% earnings decline [11]. - The Zacks Consensus Estimate for GIII's fiscal 2026 sales and EPS suggests a year-over-year decline of 4.9% and 38.7%, respectively [12]. - GIII's stock has gained 8.7% over the past three months, but ongoing license exits and retail caution cloud its near-term visibility [14][18]. Comparative Analysis - RL's disciplined execution and brand momentum position it as a stronger long-term investment compared to GIII, which is undergoing a challenging transition [17][18]. - RL's strategic focus on higher-margin categories and global reach enhances its competitive positioning in the market [17]. - GIII remains a value-driven transition story, but its near-term outlook is constrained by external pressures [18].

Core Viewpoint - G-III Apparel Group, Ltd. is set to release its third quarter fiscal 2026 earnings on December 9, 2025, with a conference call scheduled for 8:30 a.m. ET to discuss the results [1]. Company Overview - G-III Apparel Group, Ltd. is a global fashion leader specializing in design, sourcing, distribution, and marketing, owning and licensing over 30 prominent brands [3]. - The company owns ten iconic brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, and licenses more than 20 sought-after names in global fashion, such as Calvin Klein, Tommy Hilfiger, and Levi's [3]. Conference Call Details - Participants can register in advance for the conference call via a provided link, receiving a confirmation email with dial-in details [2]. - The call will also be accessible through a live audio webcast, with a replay available on the company's Investor Relations website [2].

Group 1 - G-III Apparel Group, Ltd. is making significant investments to relaunch the DKNY, Donna Karan, and Karl Lagerfeld brands, which is expected to accelerate business growth [1] - The company has entered new agreements with brands such as Converse and BCBG, further enhancing its growth potential [1] - Ongoing digitization efforts and international expansion, particularly in Europe, are key strategies for the company's future growth [1]

Financial Data and Key Metrics Changes - Net sales for Q2 2026 were $613 million, exceeding guidance, but down from $645 million in the same period last year, primarily due to the exit from Calvin Klein jeans and sportswear licenses [41][46] - GAAP earnings per diluted share were $0.25, well above the top end of guidance, compared to $0.52 in the previous year [8][44] - Gross margin percentage decreased to 40.8% from 42.8% year-over-year, impacted by higher tariff costs and unfavorable product mix [42][44] - Non-GAAP net income for Q2 was $11 million, down from $24 million in the prior year [44] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $590 million, down from $620 million last year, while retail segment net sales increased to $41 million from $37 million [41] - The gross margin for the wholesale segment was 38.9%, down from 41.2% in the previous year, while retail operations gross margin was 52.4%, down from 54.4% [42] Market Data and Key Metrics Changes - Inventory levels increased by 5% year-over-year to $640 million, reflecting planned acceleration of inventory receipts due to tariffs [44] - The company ended the quarter with a net cash position of $286 million after repurchasing $25 million in shares, compared to a neutral cash position last year [44][45] Company Strategy and Development Direction - The company is focusing on maximizing the potential of its owned brands, which are expected to drive higher operating margins and licensing income [11][12] - Strategic initiatives include optimizing supply chain capabilities, consolidating warehouse networks, and investing in technology to enhance productivity [10][50] - The company plans to exit lower-margin licenses and increase the penetration of higher-margin owned brands, anticipating gross margins to normalize and expand [6][48] Management's Comments on Operating Environment and Future Outlook - Management noted that retail partners are cautious about inventory buys due to anticipated tariff increases, impacting sales momentum [6][39] - The company expects fiscal 2026 net sales to be approximately $3.02 billion, reflecting a decrease of about 5% from the previous year, primarily due to the exit from Calvin Klein licenses [46][47] - Management expressed confidence in the growth potential of owned brands and the ability to navigate the challenging environment [39][49] Other Important Information - The company anticipates a total incremental cost of tariffs to be approximately $155 million, up from an earlier estimate of $135 million [47] - The company is actively pursuing initiatives to optimize its business model and drive cost efficiencies across operations [50] Q&A Session Summary Question: Insights on gross margin and promotional strategies - Management indicated that price increases are being targeted where appropriate, and consumer demand remains resilient despite tariff pressures [55][56] Question: Sales update and impact of PBH brands - Management acknowledged challenges from the transition of businesses and expected mid-single-digit growth for owned brands, down from previous double-digit growth rates [70][72] Question: Tariff impact on Q2 results - Management estimated that tariff impacts accounted for about half of the gross margin decline, with a significant portion of the product mix also contributing [74][75] Question: Product sourcing from India - Management clarified that the amount of product sourced from India is low single-digit percentage of total production, with a sales impact of approximately $30 million [80][82] Question: Pricing power and resistance - Management noted some resistance from retailers regarding price increases, but consumer willingness to pay remains strong [84][85] Question: Performance of owned brands and licensing opportunities - Management highlighted strong retail performance for owned brands and expressed optimism about future licensing opportunities, particularly with brands like Converse and BCBG [90][98]