G-III Apparel Group's Q4 2025: Dissecting Contradictions on Tariffs, Margins, and Brand Growth

These are the key contradictions discussed in G-III Apparel Group's latest 2025Q4 earnings call, specifically including: Impact of China Tariffs and Inventory Management, Gross Margin Expectations, Donna Karan's Growth Expectations and Marketing Spend, Impact of PVH License Roll-offs, and Owned Brands' Growth Expectations:



Growth of Owned Brands and Strategic Brand Launches:
- G-III Apparel Group's annual net sales increased 2.7% to $3.18 billion, driven by over 20% growth of key owned brands like DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin.
- The successful relaunch of Donna Karan was particularly strong, contributing significantly to top-line growth.
- The growth strategy focused on expanding product offerings and entering new markets while reducing reliance on declining PVH licenses.

Impact of PVH License Expirations and Strategic Pivot:
- The company's Calvin Klein and Tommy Hilfiger businesses represented around 34% of total sales, down from over 50% two years ago, with a projected further decline to 25% by fiscal year 2026.
- This strategic shift aimed to reposition the company's portfolio towards owned brands and new brand launches to offset license revenue declines.

Improved Gross Margins and Retail Segment Turnaround:
- Wholesale segment gross margin improved to 39.4% from 38.9%, and Retail segment gross margin rose to 50.4% from 48.1%.
- The improvement was driven by increased sales penetration of higher-margin owned brands and successful merchandising and execution initiatives in the retail segment.

Investment in Global Growth and Marketing:
- G-III's 20% investment in the All We Wear Group (AWWG) is expected to accelerate international growth through expanded distribution of key brands in Europe and North America.
- Marketing investments for brands like Donna Karan and DKNY supported strong brand awareness and sales performance.