G-III Apparel 2026 Q3 Earnings Net Income Drops 29.8% Despite Tariff Mitigation Efforts

G-III Apparel (GIII) reported fiscal 2026 Q3 earnings on Dec 09, 2025, with adjusted EPS of $1.90, surpassing estimates but revenue falling short. The company raised FY2026 guidance for non-GAAP EPS and net sales despite tariff pressures.

Revenue

Total revenue declined 9.0% to $988.65 million in 2026 Q3, down from $1.09 billion in the prior year. Wholesale revenue stood at $977.31 million, while retail contributed $45.67 million. Eliminations reduced the total to $988.65 million. The decline reflects challenges in tariff mitigation and weaker demand in certain segments.

Earnings/Net Income

G-III’s EPS fell 27.1% to $1.91, and net income dropped 29.8% to $80.59 million. Both metrics declined year-over-year despite cost management and full-price sales. The performance highlights the impact of reduced gross margins and higher operating expenses.

Post-Earnings Price Action Review

The strategy of buying GIII when earnings beat and holding for 30 days delivered moderate returns but underperformed the market. The strategy achieved a 53.41% return, trailing the benchmark by 34.88%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.18, the strategy indicated low risk but conservative returns.

CEO Commentary

Morris Goldfarb emphasized strong Q3 profitability despite tariff challenges, driven by owned brands and full-price sales. Strategic priorities include expanding DTC channels, enhancing brand strength via marketing, and pursuing international growth. Goldfarb expressed confidence in long-term growth through brand investments and digital capabilities.

Guidance

G-III raised FY2026 guidance to $2.98 billion in net sales and $2.80–$2.90 in non-GAAP EPS. The company anticipates $65 million in unmitigated tariff impacts but expects gross margins to normalize in FY2027. Capital expenditures of $40 million will focus on brand launches and tech investments.

Additional News

G-III announced a quarterly dividend of $0.10 per share, marking its first-ever dividend program. The company also repurchased $5.4 million in shares during Q3, reflecting disciplined capital allocation. CEO Morris Goldfarb highlighted plans to expand international distribution for underpenetrated brands and enhance digital capabilities. Strategic partnerships and licensing agreements, including fragrance and eyewear categories, are expected to drive growth.

Key Financials

• Revenue: $988.65M (-9.0% YoY)

• EPS: $1.91 (-27.1% YoY)

• Net Income: $80.59M (-29.8% YoY)

• Guidance: FY2026 net sales of $2.98B, non-GAAP EPS of $2.80–$2.90.