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Highlights
Q2 FY2026 net sales declined 5% year-on-year to USD 613.3 million, while net income fell to USD 10.9 million.
Total debt decreased sharply to USD 15.5 million from USD 414.0 million in the prior year.
Fiscal 2026 net sales are projected at USD 3.02 billion with expected net income between USD 112.0 million and USD 122.0 million.
G-III Apparel Group, Ltd. (NasdaqGS:GIII) announced financial results for the second quarter ended July 31, 2025. Net sales declined 5% to USD 613.3 million compared with USD 644.8 million in the prior year’s quarter.
Net income for the quarter was USD 10.9 million, or USD 0.25 per diluted share, compared with USD 24.2 million, or USD 0.53 per diluted share, in the same quarter last year.
On a non-GAAP basis, net income per diluted share was USD 0.25, versus USD 0.52 in the prior year. Adjustments excluded severance expenses of USD 0.3 million this year related to a warehouse closure and a gain of USD 0.6 million last year tied to the DKNY China acquisition.
Balance Sheet and Capital Allocation
As of July 31, 2025, inventories stood at USD 639.8 million, up from USD 610.5 million a year earlier.
Total debt declined significantly to USD 15.5 million, compared with USD 414.0 million at the same point last year. The reduction followed the August 2024 redemption of USD 400.0 million in senior secured notes, which was funded through cash on hand and borrowings from the revolving credit facility.
During the second quarter, the company repurchased 1,140,988 shares for a total of USD 24.6 million.
Fiscal 2026 Outlook
G-III provided updated guidance for fiscal 2026, citing tariff-related impacts and a cautious stance from retail partners.
Net sales are projected to be approximately USD 3.02 billion, compared with USD 3.18 billion in fiscal 2025. Net income is expected to range between USD 112.0 million and USD 122.0 million, or diluted earnings per share of USD 2.53 to USD 2.73. This compares with fiscal 2025 net income of USD 193.6 million, or USD 4.20 per diluted share.
On a non-GAAP basis, fiscal 2026 net income is expected to be between USD 113.0 million and USD 123.0 million, or diluted earnings per share of USD 2.55 to USD 2.75, versus USD 203.6 million and USD 4.42 per diluted share in fiscal 2025. Adjusted EBITDA is forecast at USD 198.0 million to USD 208.0 million, compared with USD 325.9 million in the previous year.
The company anticipates an incremental tariff cost of approximately USD 155 million for fiscal 2026. Through vendor support, sourcing adjustments, and pricing initiatives, about USD 80 million of this impact has been mitigated, with the remaining USD 75 million expected to weigh on the second half of the year.
Net interest expense is forecast at USD 5.0 million, and the tax rate is estimated at 29.9%.
Third Quarter Guidance
For the third quarter ending October 31, 2025, net sales are expected to be approximately USD 1.01 billion, compared with USD 1.09 billion in the prior year. Net income is projected between USD 62.0 million and USD 72.0 million, or USD 1.43 to USD 1.63 per diluted share, versus USD 114.8 million, or USD 2.55 per diluted share, in last year’s third quarter.
About G-III Apparel Group
G-III Apparel Group, Ltd. is a global fashion company with expertise in design, sourcing, distribution, and marketing.
