Adjusted EPS meets expectations. G-III Apparel Group (GIII) reported adjusted earnings per share of $0.30 for Q4 fiscal 2026, matching the prior quarter’s $0.19. The apparel manufacturer posted a GAAP loss of $0.76 per share, reflecting charges that weighed on reported results. Adjusted EPS fell 76% from the year-ago quarter’s $1.27, as the company navigated the wind-down of its Calvin Klein and Tommy Hilfiger licenses and absorbed a $17.5 million bad debt expense tied to the Saks bankruptcy filing.
Revenue declines on license exits. Net sales totaled $771.5 million, down ~9% from the year-ago quarter’s $839.5 million and 32% sequentially from Q3’s $988.6 million. The decline was driven primarily by the phase-out of PVH-licensed brands, which management noted represented approximately $254 million in lost sales for the full fiscal year. CFO Neal Nackman disclosed that Q4 results were further pressured by approximately $20 million in stopped shipments to Saks ahead of its December bankruptcy filing. Gross margin contracted to 37% from 39.5% in the prior-year quarter, reflecting tariff headwinds that hit hardest in Q4, though this was partially offset by a favorable shift toward full-price selling.
Owned brands drive strategic pivot. CEO Morris Goldfarb emphasized the company’s transformation during the earnings call: “Fiscal 2026 was a pivotal year for GIII. I’m proud of the results our teams delivered and the meaningful progress we made advancing our long-term strategy despite a tough environment.” He highlighted that key owned brands—DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin—collectively delivered mid-single digit growth and now account for close to 60% of revenue, up from roughly 50% the prior year. Goldfarb noted Donna Karan’s breakout performance: “In fiscal 2026, the brand delivered approximately 40% growth, underscoring the strength of the relaunch and the momentum we’re seeing across channels.” The company added approximately 1,900 points of sale for Donna Karan, with 400 more expected for fall, while donnakaran.com sales surged nearly 170%.
Fiscal 2027 outlook reflects transition year. Management guided fiscal 2027 net sales to approximately $2.71 billion, down 8% year-over-year, reflecting a $470 million reduction from expiring Calvin Klein and Tommy Hilfiger licenses. The company expects this headwind to be partially offset by high-single digit growth in its go-forward brand portfolio. Non-GAAP diluted EPS is projected between $2.00 and $2.10, compared to $2.61 in fiscal 2026. Gross margin is expected to expand by as much as 300 basis points for the full year as the company laps tariff impacts and shifts toward higher-margin owned brands. For Q1 fiscal 2027, G-III anticipates a net loss of $0.30 to $0.40 per share on sales of approximately $530 million, with SG&A pressured by the timing of spring marketing initiatives. CFO Nackman identified $25 million in cost savings across supply chain and organizational structure, expected to reach run-rate by fiscal 2028.
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