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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.<\/p>\n
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.
\nGross margin expanded 440 basis points to 45.2 per cent, while its go-forward portfolio grew at a high-single digit rate.
\nThe Marc Jacobs acquisition and improved margins support its growth outlook.<\/p>\n
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\u2019s quarterly results.<\/p>\n
\u201cOur 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,\u201d said Morris Goldfarb, chairman and chief executive officer, G-III Apparel Group<\/em><\/strong>.<\/p>\n \tAs 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.\u00a0<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (CG)<\/p>\n
\n <\/p><\/div>\n\tMargins and portfolio gains<\/h3>\n
\tUpgraded guidance for FY27 & Q3<\/h3>\n