G-III Apparel Group, Ltd. Reports Third Quarter Fiscal 2026 Results and Updates Fiscal 2026 Outlook; Initiates First Ever Quarterly Dividend Program

G-III Apparel Group, Ltd. (NasdaqGS: GIII) (“G-III” or the “Company”) today reported results for the third quarter of fiscal 2026, ended October 31, 2025 and announces approval of a quarterly dividend. Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We delivered a strong third quarter with gross margins and earnings far exceeding our expectations. This was driven by the strength of our go-forward portfolio, particularly our owned brands, as well as a healthy mix of full-price sales and our mitigation efforts against tariffs. I am pleased with how our brands are resonating with consumers and encouraged by the solid demand we have seen throughout the holiday season to date.” Mr. Goldfarb concluded, “Looking ahead, we are raising our fiscal 2026 earnings guidance to reflect our third quarter outperformance tempered by the uncertainties around the consumer environment and tariff-related margin pressures. I am extremely proud of our teams for executing on our strategic priorities and delivering strong profitability. With our powerful brand portfolio and best-in-class operating model, we are well-positioned to achieve our fiscal 2026 outlook. Our strong financial profile gives us the ability to return capital directly to stockholders including through our newly initiated dividend program, while also continuing to pursue strategic opportunities to drive profitable growth.” Results of Operations Third Quarter Fiscal 2026 Net sales for the third quarter ended October 31, 2025 decreased 9% to $988.6 million compared to $1.09 billion in the prior year’s third quarter. Net income for the third quarter ended October 31, 2025 was $80.6 million, or $1.84 per diluted share, compared to $114.8 million, or $2.55 per diluted share, in the prior year’s third quarter. Non-GAAP net income per diluted share was $1.90 for the third quarter ended October 31, 2025 compared to $2.59 in the same period last year. Non-GAAP net income per diluted share excludes (i) in the third quarter of fiscal 2026, $2.4 million of professional fees related to a potential strategic opportunity that did not come to fruition, (ii) in the third quarter of fiscal 2026, asset impairments of $1.6 million, (iii) in the third quarter of fiscal 2025, $0.5 million in one-time severance expenses related to a closed warehouse and (iv) in the third quarter of fiscal 2025, a $1.6 million write-off of deferred financing costs related to the redemption of our senior secured notes (the “Notes”). The aggregate effect of these exclusions was equal to $0.06 per diluted share in the third quarter of this year and $0.04 per diluted share in last year’s third quarter. Balance Sheet as of Third Quarter Fiscal 2026 Inventories increased 3% to $547.1 million this year compared to $532.5 million last year. Total debt decreased 95% to $10.6 million this year compared to $224.2 million last year with the Company ending the quarter in a net cash position of $173.5 million compared to a net debt position of $119.5 million in the same period last year. Capital Allocation Share repurchases of 209,851 for $5.4 million were made in the third quarter and 2,158,276 for $49.8 million in the year-to-date period. G-III announced today that its Board of Directors has approved a new quarterly dividend program to evolve its strategic use of capital. The Board of Directors declared an initial quarterly cash dividend of $0.10 per share. The dividend will be paid on December 29, 2025, to all stockholders of record as of December 15, 2025. The Company intends to pay dividends quarterly in the future, subject to market conditions and approval by the Board of Directors. Outlook The Company has updated guidance for fiscal 2026, which reflects the strength of our third-quarter earnings outperformance, along with a disciplined view of the current consumer landscape and the expected effects of tariffs on our top and bottom lines. Based on current tariff rates, the Company anticipates the gross impact of tariffs will now be approximately $135 million. This has been partially offset through vendor participation, strategic sourcing shifts, and targeted price increases. The remaining unmitigated impact, reflected in fiscal 2026 guidance, is now estimated at $65 million. Fiscal 2026 Net sales are expected to be approximately $2.98 billion (previous guidance $3.02 billion). This compares to net sales of $3.18 billion for fiscal 2025. Net income is expected to be between $121.0 million and $126.0 million (previous guidance $112.0 million and $122.0 million), or diluted earnings per share between $2.72 and $2.82 (previous guidance $2.53 and $2.73). This compares to net income of $193.6 million, or $4.20 per diluted share for fiscal 2025. Non-GAAP net income for fiscal 2026 is expected to be between $125.0 million and $130.0 million (previous guidance $113.0 million and $123.0 million), or diluted earnings per share between $2.80 and $2.90 (previous guidance $2.55 and $2.75). This compares to non-GAAP net income of $203.6 million, or diluted earnings per share of $4.42 for fiscal 2025. Adjusted EBITDA for fiscal 2026 is expected to be between $208.0 million and $213.0 million (previous guidance $198.0 million and $208.0 million) compared to adjusted EBITDA of $325.9 million in fiscal 2025. Net interest expense is expected to be approximately $1.5 million. Tax rate for fiscal 2026 is estimated to be 29.5%. Non-GAAP Financial Measures Reconciliations of GAAP net income to non-GAAP net income, GAAP net income per diluted share to non-GAAP net income per diluted share and GAAP net income to adjusted EBITDA are presented in tables accompanying the financial statements included in this release and provide useful information to evaluate the Company’s operational performance. A description of the amounts excluded on a non-GAAP basis are provided in conjunction with these tables. Non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA should be evaluated in light of the Company’s financial statements prepared in accordance with GAAP.... Read more

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