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- **Revenue Resilience**: Q2 2026 net sales $613M beat expectations, driven by owned brands despite 5% FY2026 sales decline.
- **Tariff Mitigation**: $155M incremental tariff costs partially offset by price increases; FY2027 gross margin normalization expected.
- **Brand Growth**: Owned brands (now 40% of portfolio) +mid-single digits growth; Donna Karan, Karl Lagerfeld e-commerce up double digits.
- **Strategic Expansion**: New licenses (Converse, BCBG) tap $300M+ new channels; FY2026 guidance reflects cautious retail outlook and India tariff impact.
- **Financial Strength**: $286M net cash; FY2026 Non-GAAP EPS $2.55-$2.75 reflects disciplined execution amid macro challenges.

**【CEO Summary Section】**
- Exceeded Q2 2026 expectations with net sales of $613M, driven by owned brands like DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin.
- Gross margins impacted by higher-than-expected tariffs, with mitigation strategies including vendor participation and selective price increases.
- Anticipates gross margin normalization and expansion as owned brands (now 40% of portfolio) gain market share and lower-margin PVH licenses exit.
- Strong cash position ($286M net cash) and disciplined inventory management amid cautious retail partner outlook.
- Strategic investments in technology (3D design, AI), supply chain optimization (4 warehouse consolidations), and global brand expansion.

**【CFO Financial Commentary】**
- Q2 2026 GAAP EPS: $0.25 vs. $0.52 prior year; Non-GAAP EPS: $0.25 vs. $0.52, down due to tariff costs and lower sales.
- Updated FY2026 guidance: Net sales $3.02B (-5% YoY), Non-GAAP EPS $2.55-$2.75, reflecting $155M incremental tariff impact.
- Tariff mitigation: $75M unmitigated impact in FY2026, with price increases and vendor cost-sharing reducing absorption.
- Inventory up 5% YoY ($640M) due to accelerated receipts; Digital sales growth mid-single digits, owned e-commerce up double digits.

**【Q&A Highlights】**
- **Tariff Mitigation Effectiveness**: CEO notes price increases accepted without consumer resistance; CFO expects FY2027 normalization as tariffs are priced upfront.
- **Sales Mix Shifts**: PVH brands (Calvin Klein, Tommy Hilfiger) to drop from ~25% to ~10% of sales post-FY2026; owned brands expected +mid-single digits growth.
- **New Licensing Opportunities**: Converse and BCBG launches exceed expectations, accessing new channels (big box, international) and consumer segments.
- **Consumer Resilience**: Back-to-school performance strong; owned brands' aspirational positioning drives full-price sales despite macro uncertainty.

G-III Apparel Group, Ltd. (GIII) Q2 2026 Earnings Call Transcript

- **Q1 Outperformance**: Non-GAAP EPS of $0.19 driven by 50%+ growth in Donna Karan and double-digit gains in DKNY and Karl Lagerfeld.
- **Tariff Mitigation**: $135M tariff impact offset by sourcing diversification (China <20% of production) and selective price hikes.
- **Retail Turnaround**: Segment to break even in FY2026, reducing losses by $14M through store closures and digital focus.
- **Brand Momentum**: Donna Karan digital sales tripled, Karl Lagerfeld Seoul popup exceeded projections, DKNY expands men's licensing.
- **Risks**: Postponed Sonia Rykiel launch and $135M tariff impact weigh on H2 guidance, but strong brand demand mitigates promotion risks.

**【CEO Summary Section】**
- **Q1 Fiscal 2026 Results**: Revenue of $584 million, driven by double-digit growth in owned brands DKNY, Karl Lagerfeld, and Donna Karan, offsetting the loss of Calvin Klein jeans and sportswear licenses. Non-GAAP EPS was $0.19, exceeding expectations.
- **Tariff Mitigation Strategy**: $135 million unmitigated tariff impact for FY2026. Strategies include sourcing diversification (China now <20% of production), selective price increases, and operational efficiencies (e.g., warehouse consolidation reducing 150+ staff).
- **Brand Momentum**: Donna Karan sales grew nearly 50% YoY, with strong digital growth and AURs. Karl Lagerfeld saw 20%+ growth in sportswear and footwear. DKNY expanded lifestyle categories and licensing.
- **Retail Segment Turnaround**: Expected to break even in FY2026, reducing losses by $14 million through store closures and digital focus.
- **Postponed Launch**: Sonia Rykiel launch canceled due to macroeconomic uncertainty, with costs written off and team reallocated.

**【CFO Financial Commentary】**
- **Net Sales**: $584 million (Q1 FY2026) vs. $610 million (Q1 FY2025), in line with guidance. Wholesale segment down 6%, retail segment up 116%.
- **Gross Margin**: 42.2% (Q1 FY2026) vs. 42.5% (Q1 FY2025), stable despite product mix shifts. Retail segment margin improved to 53.5% due to Donna Karan sales.
- **Non-GAAP Net Income**: $8.4 million ($0.19 EPS) vs. $5.8 million ($0.12 EPS). Operating expenses down 2% due to reduced marketing spend.
- **Liquidity**: $740 million in cash and availability, with $20 million share buybacks in Q1.
- **FY2026 Guidance**: Reaffirmed net sales of $3.14 billion. Withdrew EPS and EBITDA guidance due to tariff uncertainty, expecting incremental impact in H2.

**【Q&A Highlights】**
- **Pricing Strategy**: Retailers cooperating on selective price increases for newer, limited-distribution brands (e.g., Donna Karan, Karl Lagerfeld). Tariffs partially offset by vendor discounts and sourcing diversification.
- **Inventory Management**: Q2 inventory down 5% YoY, cautious buying amid macro uncertainty. H2 demand seen as low-single to mid-single digit growth.
- **Tariff Impact**: $135 million unmitigated impact, predominantly in H2. Mitigation efforts include production restarts in lower-tariff regions and selective price adjustments.
- **Promotions**: Minimal pressure due to strong brand demand and quality product execution.
- **Sonia Rykiel**: Launch delay due to production challenges and macro risks, with no material financial impact beyond write-offs.


G-III Apparel (GIII)-6 Jun 25-2026 Q1 Earnings call transcript

- **Revenue Beats Expectations**: FY2025 net sales $3.18B (+2.7% YoY), owned brands grow 20%+.
- **Star Brands Perform**: Donna Karan (+40% FY26), DKNY ($675M sales), Karl Lagerfeld ($580M sales).
- **Profit Growth**: Non-GAAP EPS $4.42 (+9% YoY), gross margin 40.8%.
- **Tariff Resilience**: 80%+ offset through pricing, sourcing diversification.
- **AI & Expansion**: 20% AWWG investment, AI adoption in design and operations.
- **FY26 Outlook**: Sales $3.14B, EPS $4.15-$4.25, DTC sales +60% YoY.


**【CEO Summary Section】**
- **Record Revenue Growth**: Fiscal 2025 net sales reached $3.18 billion, up 2.7% YoY, driven by 20%+ growth in owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin). Owned brands now represent ~50% of total sales.
- **Brand Highlights**: 
  - **Donna Karan**: Successful relaunch with 40%+ FY26 growth potential, $675M+ in reported net sales, and 1,700+ points of sale by Spring 2025.
  - **DKNY**: Mid-teen sales growth, 1,000+ new points of sale, and $675M in reported net sales.
  - **Karl Lagerfeld**: 35% North America growth, $580M in reported net sales, and expansion into men's categories.
- **Strategic Initiatives**: 
  - 20% investment in AWWG for international growth (Spain, Portugal), adding 3,500+ points of sale across 86 countries.
  - AI adoption in design and operations to streamline processes.
  - Retail turnaround: Cut losses in half, with further improvements expected in FY26.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: 
  - Net sales: $840M (+10% YoY)
  - Non-GAAP EPS: $1.27 vs. $0.76 YoY
  - Gross margin: 39.5% vs. 36.9% YoY
- **FY2025 Full Year**: 
  - Non-GAAP EPS: $4.42 (+9% YoY)
  - Gross margin: 40.8% vs. 40.1% YoY
  - Inventory: $478M (-8% YoY)
- **FY2026 Guidance**: 
  - Net sales: $3.14B (-1% YoY)
  - Non-GAAP EPS: $4.15-$4.25
  - Adjusted EBITDA: $310M-$315M (-4.6% YoY)
  - Tariff Mitigation: 80%+ offset through pricing, sourcing diversification, and vendor negotiations.

**【Q&A Key Takeaways】**
- **Tariff Impact**: 80%+ of China-sourced outerwear price increases offset tariffs; 20%+ of product not affected by tariffs.
- **Order Trends**: 50% of FY26 order book booked, consistent with FY25 pace.
- **DTC Growth**: Donna Karan DTC sales +60% YoY; direct-to-consumer investments to accelerate in FY26.
- **AWWG Partnership**: Expected to drive double-digit growth in Europe, with 6 new stores in Latin America.
- **AI Adoption**: Exploring AI in design, supply chain, and marketing for Converse launch.


G-III Apparel (GIII)-13 Mar 25-2025 Q4 Earnings call transcript

G-III Apparel (GIII)-10 Dec 24-2025 Q3 Earnings call transcript

G-III Apparel (GIII)-5 Sep 24-2025 Q2 Earnings call transcript

G-III Apparel (GIII)-6 Jun 24-2025 Q1 Earnings call transcript

G-III Apparel (GIII)-14 Mar 24-2024 Q4 Earnings call transcript

- **Record profits**: Q3 non-GAAP EPS of $2.78, up 104% YoY, driven by 40.6% gross margin and 18% operating margin.
- **New growth engines**: 4 new brands (Donna Karan, Nautica, Halston, Champion) set to launch in 2024, targeting $500M+ in product sales and $20M+ licensing income.
- **Digital dominance**: Amazon sales up 80% YoY, pure-play channel growth offsetting retail traffic decline.
- **Financial flexibility**: $840M cash, no debt, and $10M share buyback remaining under program.
- **Margin resilience**: 600bps gross margin expansion YoY, with pricing power and inventory efficiency driving sustained profitability.

**【CEO Opening Remarks】**
- **Strong profitability**: Q3 non-GAAP EPS of $2.78, exceeding guidance by $0.70 and up 104% YoY.
- **New initiatives**: 4 new brands (repositioned Donna Karan, Nautica, Halston, Champion outerwear) set to launch in 2024, with 200+ doors and 60+ shop-in-shops.
- **Hiring**: Dana Perlman as Chief Growth & Operations Officer to drive innovation and growth.
- **Inventory management**: Total inventory down 34% to $592M, enabling 18% operating margin vs. 9% last year.
- **Financial strength**: $840M cash and availability, with $26M share buyback and $10M remaining under repurchase program.

**【CFO Financial Commentary】**
- **Top-line**: Q3 net sales $1.07B (-1% YoY), driven by owned brands (DKNY, Karl Lagerfeld) and digital growth (+30%).
- **Gross margin**: 40.6% (vs. 32% last year), benefiting from lower freight costs and warehousing efficiencies.
- **SG&A**: $236M (-13% YoY as % of sales), with 34% inventory reduction offsetting inflationary pressures.
- **Guidance update**: Full-year non-GAAP EPS raised to $3.90-$4.00 (vs. prior $3.20-$3.30), driven by margin expansion and cost control.

**【Q&A Highlights】**
- **Halston & Champion potential**: Halston could reach $500M+ in product sales with $20M+ licensing income; Champion outerwear license expected to generate $80-100M in 3-4 years.
- **Margin sustainability**: Structural improvements from pricing power and brand strength, with 600bps gross margin expansion YoY.
- **Consumer trends**: Cautious outlook due to inflation and unseasonal weather, but owned brands (30%+ growth) and digital channels (+80% Amazon sales) offset weakness.
- **International expansion**: Karl Lagerfeld jeans store in Madrid successful; Vilebrequin expanding to Florida luxury hotel with 15K sqft lifestyle project.

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