On September 4, U.S. fashion giant G-III Apparel Group, Ltd. announced its financial results for the second quarter of fiscal 2026. While both sales and net income declined year-on-year, the company still managed to exceed market expectations.
For the quarter, net sales fell 5% to $613.3 million, while net income dropped to $10.9 million, or $0.25 per diluted share, compared with $24.2 million, or $0.53 per share, in the same period last year. The decline was largely attributed to macroeconomic headwinds and rising costs.
G-III operates 10 owned brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin. The company emphasized that the resilience of these core labels supported its performance, helping both sales and profits surpass market expectations.
In addition, the company holds licenses for more than 20 other major brands such as Calvin Klein, Tommy Hilfiger, Levi’s, Nautica, Halston, and Converse, underscoring its strong presence in the global fashion industry.
Morris Goldfarb, Chairman and CEO of G-III, commented in a statement: “These results highlight our ability to execute on our strategic priorities and leverage our powerful corporate platform to maximize the full potential of our globally recognized brands.”
He further addressed the company’s outlook, noting: “Looking ahead, we have updated fiscal 2026 guidance to reflect the current macro environment, a more cautious outlook from our retail partners, as well as the impact of tariffs on our top and bottom lines. We are actively mitigating tariff pressures through a combination of vendor participation, selective sourcing shifts, and targeted price increases.”
G-III estimates additional tariff costs of approximately $155 million in fiscal 2026, with about $75 million of that remaining unmitigated, particularly impacting the second half of the year.
As a result, full-year net sales are projected at around $3.02 billion, down from $3.18 billion in fiscal 2025. Net income is expected to range between $112 million and $122 million (or $2.53 to $2.73 per diluted share), compared with $193.6 million (or $4.20 per share) in the previous fiscal year.
For the third quarter ending October 31, 2025, G-III forecasted net sales of $1.01 billion and net income of $62 million to $72 million (or $1.43 to $1.63 per diluted share), below last year’s results of $1.15 billion in sales and $114.8 million in net income (or $2.55 per share).
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