G-III Apparel 2026 Q3 Earnings Beats EPS Estimates Amid Revenue Decline

G-III Apparel (GIII) reported fiscal 2026 Q3 earnings on December 9, 2025, with a non-GAAP EPS of $1.90, exceeding the $1.60 consensus estimate by 18.75%. However, revenue fell short of expectations, declining 9.0% to $988.65 million. The company raised full-year EPS guidance to $2.80–$2.90 and announced a quarterly dividend of $0.10 per share, signaling confidence in its capital return strategy despite margin pressures.

Revenue

Wholesale revenue accounted for the majority of G-III’s total revenue, amounting to $977.31 million, while the Retail segment contributed $45.67 million. An elimination adjustment of -$34.33 million offset intersegment sales, resulting in a consolidated total of $988.65 million. This represents a 9.0% year-over-year decline, driven by reduced sales from Calvin Klein and Tommy Hilfiger licenses, though owned brands like Donna Karan and Karl Lagerfeld showed resilience.

Earnings/Net Income

G-III’s non-GAAP EPS fell 27.1% to $1.90 in Q3 2026, compared to $2.62 in Q3 2025, while net income dropped 29.8% to $80.59 million. Despite beating EPS estimates, the earnings decline reflects broader industry challenges, including tariff-related margin pressures and weaker consumer demand in key categories.

Post-Earnings Price Action Review

The stock price of G-III surged 7.89% in pre-market trading following the earnings release, reflecting optimism around the dividend announcement and raised guidance. However, a strategy of buying GIII when earnings beat and holding for 30 days delivered moderate performance, achieving a 53.41% return but underperforming the benchmark by 34.88%. The strategy’s maximum drawdown of 0.00% and Sharpe ratio of 0.18 highlighted its low-risk profile but limited growth potential.

CEO Commentary

CEO Morris Goldfarb emphasized the company’s resilience, stating, “We delivered strong profitability in Q3 despite the impacts of tariffs,” and highlighted progress in replacing 70% of lost sales from PVH licenses through owned brands. He also outlined strategic priorities, including expanding international distribution and leveraging digital channels to drive growth.

Guidance

For fiscal 2026, G-III raised non-GAAP EPS guidance to $2.80–$2.90, with adjusted EBITDA projected between $208–$213 million. Net sales are expected to reach $2.98 billion, down from the previous $3.02B target, reflecting ongoing challenges in the Calvin Klein and Tommy Hilfiger license businesses.

Additional News

G-III announced a quarterly dividend of $0.10 per share, payable December 29, marking its first-ever dividend program. The move underscores the company’s focus on capital return amid improved profitability. Additionally, the firm reiterated plans to expand international distribution and explore strategic acquisitions to bolster growth. CFO Neal Nackman noted that gross margins are expected to normalize in FY2027, mitigating current tariff-related pressures.