G-III Apparel 2026 Q2 Earnings Net Income Slumps 54.8% Amid Revenue Decline

G-III Apparel reported fiscal 2026 Q2 earnings on September 5, 2025, with results that fell below expectations amid revenue contraction and a significant drop in net income. The company provided updated guidance reflecting ongoing margin pressures from tariffs and strategic shifts away from lower-margin PVH licenses.

Revenue
G-III Apparel’s total revenue for Q2 2026 dropped 4.9% year-over-year to $613.27 million, driven by softness in key markets and retail caution. The wholesale segment remained the core driver, generating $589.02 million in revenue. The retail segment added $41.06 million, while intercompany eliminations reduced total revenue by $16.82 million.

Earnings/Net Income
The company’s earnings per share (EPS) plummeted 51.9% to $0.26 in Q2 2026, down from $0.54 a year ago. Net income also fell sharply, declining 54.8% to $10.94 million compared to $24.19 million in Q2 2025. The results reflect a challenging operating environment, including the impact of tariffs and strategic realignment.

Price Action
The stock price of G-III Apparel fell 5.60% during the latest trading day and declined 4.10% over the most recent full trading week. However, it has bounced 6.44% month-to-date, showing some short-term resilience amid mixed market sentiment.

Post-Earnings Price Action Review
CEO Morris Goldfarb highlighted Q2 sales of $613 million and EPS of $0.25, noting strong performance from owned brands such as DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin. The company is navigating tariff-driven margin pressures but expects normalization as owned brands scale. Strategic priorities include streamlining operations, investing in digital tools, and expanding lifestyle categories globally. Goldfarb emphasized leveraging brand DNA to enhance differentiation and margin potential while exiting lower-margin PVH licenses. The tone was cautiously optimistic, acknowledging near-term challenges from tariffs and retail caution but expressing long-term confidence in growth through brand scaling and operational efficiency.

Guidance
G-III expects full-year 2026 net sales of $3.02 billion and non-GAAP EPS in the range of $2.55–$2.75. These projections factor in the ongoing impact of tariffs, the exit from PVH licenses, and reduced retail buys. The company estimates $155 million in tariff costs for 2026, with $75 million unmitigated. Gross margins are anticipated to decline by 300 basis points, while SG&A expenses will focus on efficiency improvements. Capital expenditures are expected to reach $40 million, supporting brand launches and technology upgrades. The tax rate is projected at 30%, with no share buybacks included in the guidance.

Additional News
Notable non-earnings-related news from the period included political developments in Nigeria, including Oyo State’s construction of a 400,000-liter water tank at Ibadan Airport and a 3.7 trillion naira revenue generated by Lagos State’s Apapa Customs command within 15 months. Additionally, Temi Otedola, daughter of billionaire Femi Otedola, sparked public debate by officially changing her surname to Ajibade, drawing attention to shifting cultural and social dynamics in the country.