The net income fell to $80.6 million, or $1.84 per diluted share, compared to $114.8 million, or $2.55 per diluted share, in the same period a year earlier. Non-GAAP net income per diluted share was $1.9, down from $2.59 last year, with adjustments primarily related to professional fees tied to a strategic opportunity that did not proceed, asset impairments, and prior-year severance and financing write-offs.
G-III Apparel Group’s Q3 FY26 net sales has fallen 9 per cent to $988.6 million, though profitability exceeded expectations due to strong owned brands and tariff mitigation.
Net income declined to $80.6 million, while inventories rose and debt dropped sharply.
The company raised its FY26 earnings guidance despite tariff pressures, forecasting lower full-year sales.
The aggregate effect of exclusions was $0.06 per diluted share this year and $0.04 per diluted share in Q3 FY25. Inventories increased 3 per cent to $547.1 million. Total debt fell sharply to $10.6 million from $224.2 million last year, leaving the company in a net cash position of $173.5 million, compared with net debt of $119.5 million in the prior-year quarter, G-III Apparel Group said in a press release.
“We delivered a strong third quarter with gross margins and earnings far exceeding our expectations. This was driven by the strength of our go-forward portfolio, particularly our owned brands, as well as a healthy mix of full-price sales and our mitigation efforts against tariffs. I am pleased with how our brands are resonating with consumers and encouraged by the solid demand we have seen throughout the holiday season to date,” said Morris Goldfarb, chairman and CEO of G-III.
The company repurchased 209,851 shares for $5.4 million during Q3 and 2,158,276 shares for $49.8 million year-to-date (YTD).
G-III’s Board approved a new quarterly dividend programme and declared an initial cash dividend of $0.1 per share, payable on December 29, 2025, to shareholders of record on December 15, 2025.
For fiscal 2026, G-III expects net sales of about $2.98 billion, slightly below the previous $3.02 billion outlook and down from $3.18 billion in FY25. Net income is projected at $121–126 million, with diluted earnings per share (EPS) of $2.72–2.82, while non-GAAP net income is forecast at $125–130 million with EPS of $2.8–2.9, both lower than FY25. Adjusted EBITDA is anticipated to reach $208–213 million, compared with $325.9 million last year. The company expects net interest expense of roughly $1.5 million and a tax rate of 29.5 per cent.
“Looking ahead, we are raising our fiscal 2026 earnings guidance to reflect our third quarter outperformance tempered by the uncertainties around the consumer environment and tariff-related margin pressures. I am extremely proud of our teams for executing on our strategic priorities and delivering strong profitability,” added Goldfarb. “With our powerful brand portfolio and best-in-class operating model, we are well-positioned to achieve our fiscal 2026 outlook. Our strong financial profile gives us the ability to return capital directly to stockholders including through our newly initiated dividend programme, while also continuing to pursue strategic opportunities to drive profitable growth.”
Based on current tariff rates, G-III now expects a gross tariff impact of approximately $135 million, with $65 million remaining unmitigated after vendor participation, sourcing shifts, and targeted price adjustments.
Fibre2Fashion News Desk (SG)
