G-III Apparel Group Ltd Reports Fourth Quarter and Full Year Fiscal 2026 Results; Offers Outlook for Fiscal 2027

For the fourth quarter ending January 31, 2026, G-III reported a net sales decrease of 8.1%, totaling $771.5 million, compared to $839.5 million in the same quarter of the previous year. The company faced a net loss of $(31.9) million, or $(0.76) per share, a stark contrast to the net income of $48.8 million, or $1.07 per diluted share, recorded in the fourth quarter of fiscal 2025.

The results were notably impacted by $45.0 million in non-cash asset impairment charges and $17.5 million in bad debt expense, primarily associated with the bankruptcy of Saks Global. When adjusted for these factors, G-III's non-GAAP net income per diluted share was $0.30, down from $1.27 in the prior year.

For the fiscal year ending January 31, 2026, G-III reported net sales of $2.96 billion, a decline of 7.0% from $3.18 billion in fiscal 2025. The company's net income fell to $67.4 million, or $1.51 per diluted share, compared to $193.6 million, or $4.20 per diluted share, in the prior fiscal year. The annual results also included $46.1 million of non-cash asset impairment charges and $17.5 million of bad debt expense.

G-III’s non-GAAP net income per diluted share for the year was $2.61, down from $4.42 in fiscal 2025.

As of January 31, 2026, G-III's cash and cash equivalents stood at $406.7 million, a significant increase from $181.4 million the previous year. The company effectively managed its inventory, reporting a 3.8% decrease to $460.0 million.

In terms of shareholder returns, G-III returned $54.0 million to shareholders in fiscal 2026, comprising $49.8 million in share repurchases and $4.2 million in dividends.

Morris Goldfarb, Chairman and CEO of G-III, emphasized the company's commitment to enhancing profitability through various cost-saving initiatives, projecting an annual run-rate savings of $25 million by fiscal 2028. The company is focused on driving gross margin expansion and streamlining its cost structure, aiming to unlock productivity and profitability across its operations.

Looking ahead, G-III provided its outlook for fiscal 2027, projecting net sales of approximately $2.71 billion, reflecting the anticipated loss of $470 million in sales due to the exit from the Calvin Klein and Tommy Hilfiger businesses.

The company expects net income to range between $88.0 million and $92.0 million, translating to diluted earnings per share of $2.00 to $2.10. This marks an increase from the net income recorded in fiscal 2026.

For the first quarter of fiscal 2027, G-III anticipates net sales of around $530.0 million, down from $583.6 million in the previous year’s first quarter, with an expected net loss between $(18.0) million and $(13.0) million.

Despite the challenges faced in fiscal 2026, G-III Apparel Group is entering fiscal 2027 with a strong balance sheet and a strategic focus on growth and efficiency. Morris Goldfarb’s remarks highlight the company’s resilience and determination to leverage its brand strength and operational discipline to navigate the evolving market landscape while returning value to shareholders. As G-III moves forward, stakeholders will be keenly observing the execution of its strategic initiatives and the impact of its evolving portfolio on future performance.