G-iii Apparel Group Stock Earnings Reports

G-III Apparel reported better-than-expected Q2 results with net sales of $613M and GAAP EPS of $0.25, driven by growth in its owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin) and wholesale strength. Gross margin was pressured (down ~230 bps vs prior year) primarily by higher-than-expected tariff costs and an unfavorable product mix. Management is mitigating tariff pressures via vendor participation, selective sourcing shifts, and targeted price increases while absorbing some costs to protect market share in the near term. Inventory was intentionally accelerated (inventories +5% YoY) due to tariffs; the company ended the quarter with net cash of $286M after $25M in buybacks. Fiscal 2026 guidance was updated: net sales ~ $3.02B (down ~5% YoY), non-GAAP EPS $2.55–$2.75, adjusted EBITDA $198M–$208M; management estimates incremental tariff costs of ~$155M with an unmitigated impact of ~$75M for fiscal 2026 (most in H2). Strategic priorities include scaling owned brands globally, exiting PVH licenses (Calvin Klein and Tommy Hilfiger categories), consolidating warehouse footprint (exit 4 facilities), investing in digital/3D/AI and marketing, and selectively returning capital via buybacks. Management expects gross margins to normalize and expand over time as owned brands penetration increases and lower‑margin licenses exit, and they view the PVH transition as a channel/opportunity to capture market share with their brands.