For the Q2 ended July 31, 2026, net income more than doubled to $20.2 million, or $0.46 per diluted share, compared to $10.9 million, or $0.25 per diluted share, in the prior-year period.
G-III Apparel Group raised its FY27 earnings guidance after Q2 net income more than doubled to $20.2 million, despite a 10 per cent sales decline to $554.1 million.
Gross margin expanded 440 basis points to 45.2 per cent, while its go-forward portfolio grew at a high-single digit rate.
The Marc Jacobs acquisition and improved margins support its growth outlook.
Net sales for the quarter decreased 10 per cent year on year to $554.1 million, while gross margin expanded by 440 basis points to 45.2 per cent, reflecting higher pricing and a continued shift toward higher-margin owned brands. Non-GAAP net income per diluted share was $0.26, up slightly from $0.25 a year earlier, according to the company’s quarterly results.
“Our second quarter results reflect strong execution across the organisation, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go-forward portfolio grew at a high-single digit rate during the quarter, reinforcing our confidence in the power of our brands and business model,” said Morris Goldfarb, chairman and chief executive officer, G-III Apparel Group.
Margins and portfolio gains
As of July 31, 2026, G-III held cash and cash equivalents of $529.2 million, up from $301.8 million a year earlier. Inventories were reduced by 13 per cent to $555.0 million.
The company completed the acquisition of Marc Jacobs, targeting $1 billion in long-term annual revenue from the brand, and noted that the transaction is expected to be slightly dilutive in FY27 but accretive thereafter.
Gross margin for Q2 FY27 improved to 45.2 per cent from 40.8 per cent in the prior year, driven by price increases and a favourable mix shift.
The company reported a high-single digit sales increase in its go-forward portfolio, offsetting the impact of discontinued lines, including Calvin Klein and Tommy Hilfiger products.
Upgraded guidance for FY27 & Q3
For the full fiscal year ending January 31, 2027, G-III now expects net income between $181 million and $185 million, or diluted earnings per share of $4.10 to $4.20, compared to $67.4 million, or $1.51 per share, in FY26.
Non-GAAP net income is forecast between $97 million and $101 million, or $2.20 to $2.30 per share, versus $116.2 million, or $2.61 per share, in the prior year.
Net sales for FY27 are projected at approximately $2.71 billion, reflecting the loss of about $460 million in sales from Calvin Klein and Tommy Hilfiger lines.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to be between $174 million and $178 million, compared to $192.4 million in FY26.
For the third quarter (Q3) of FY27, net sales are expected to be about $870 million, with net income between $59 million and $64 million, or diluted earnings per share of $1.35 to $1.45, down from $80.6 million, or $1.84 per share, in the prior-year quarter.
G-III Apparel Group said it remains optimistic about its strategic transformation and ability to capitalise on new opportunities, with a focus on leveraging its expanded brand portfolio and financial flexibility to drive long-term shareholder value.
Fibre2Fashion News Desk (CG)
