G-III Apparel Group (NASDAQ:GIII) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

G-III Apparel Group (NASDAQ:GIII) posted its earnings results on Wednesday. The textile maker reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03, Briefing.com reports. The business had revenue of $554.09 million for the quarter, compared to analysts’ expectations of $570.37 million. G-III Apparel Group had a net margin of 4.75% and a return on equity of 5.55%. The firm’s revenue for the quarter was down 9.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.25 earnings per share. G-III Apparel Group updated its Q3 2027 guidance to 1.350-1.450 EPS and its FY 2027 guidance to 2.200-2.300 EPS.

Here are the key takeaways from G-III Apparel Group’s conference call:

• Second-quarter earnings exceeded guidance: Non-GAAP EPS was $0.26 versus guidance of $0.15–$0.25, supported by disciplined expenses and a 440-basis-point gross-margin expansion to 45.2%.
• Go-forward brands continued to grow: Excluding the exiting Calvin Klein and Tommy Hilfiger licenses, the portfolio grew at a high-single-digit rate, with full-price wholesale sales up more than 20%; Donna Karan sales rose over 45%.
• Marc Jacobs acquisition closed and expands G-III’s long-term opportunity: The company expects approximately $360 million of Marc Jacobs operating sales this year and sees a path toward $1 billion in annual revenue through ready-to-wear, licensing, broader distribution, and international growth.
• Near-term sales remain pressured by license exits and Europe: Second-quarter sales declined 10% to approximately $555 million, while European softness and the continued wind-down of Calvin Klein and Tommy Hilfiger will drive a larger year-over-year sales decline in the third quarter.
• Full-year EPS guidance was raised: Fiscal 2027 non-GAAP EPS guidance increased to $2.20–$2.30, although the outlook excludes Marc Jacobs and management expects the acquisition to be slightly dilutive for the remainder of fiscal 2027 before becoming accretive thereafter.

G-III Apparel Group Stock Performance

Shares of GIII stock opened at $27.23 on Friday. G-III Apparel Group has a 52 week low of $24.61 and a 52 week high of $37.54. The stock has a market capitalization of $1.15 billion, a PE ratio of 8.96 and a beta of 1.27. The stock’s fifty day moving average is $34.26 and its 200-day moving average is $31.86.

G-III Apparel Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.40 dividend on an annualized basis and a yield of 1.5%. G-III Apparel Group’s payout ratio is currently 14.13%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in GIII. Balyasny Asset Management L.P. bought a new position in shares of G-III Apparel Group in the second quarter worth about $7,546,000. Barclays PLC grew its stake in shares of G-III Apparel Group by 54.0% during the fourth quarter. Barclays PLC now owns 717,607 shares of the textile maker’s stock valued at $20,782,000 after purchasing an additional 251,502 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of G-III Apparel Group by 30.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,054,266 shares of the textile maker’s stock valued at $28,054,000 after purchasing an additional 247,245 shares during the last quarter. Millennium Management LLC increased its holdings in shares of G-III Apparel Group by 1,610.3% in the third quarter. Millennium Management LLC now owns 209,713 shares of the textile maker’s stock valued at $5,580,000 after purchasing an additional 197,451 shares in the last quarter. Finally, Squarepoint Ops LLC increased its holdings in shares of G-III Apparel Group by 193.1% in the second quarter. Squarepoint Ops LLC now owns 261,603 shares of the textile maker’s stock valued at $5,860,000 after purchasing an additional 172,352 shares in the last quarter. Institutional investors and hedge funds own 92.13% of the company’s stock.

More G-III Apparel Group News

Here are the key news stories impacting G-III Apparel Group this week:

• Positive Sentiment: G-III reported second-quarter fiscal 2027 GAAP earnings of $0.46 per diluted share, up from $0.25 a year earlier and above consensus estimates. Adjusted EPS was $0.26, also ahead of expectations. G-III Apparel Boosts FY27 Outlook As Q2 Profit Soars
• Positive Sentiment: Gross margin expanded 440 basis points to 45.2%, helped by pricing and a shift toward higher-margin owned brands. Management said sales from its go-forward portfolio grew at a high-single-digit rate, suggesting underlying brand performance is stronger than headline revenue indicates. G-III Q2 Earnings Beat Estimates
• Positive Sentiment: G-III completed its acquisition of Marc Jacobs, adding a significant owned brand and targeting approximately $1 billion in long-term annual revenue from the business. Cash increased to $529.2 million, while inventory declined 13% year over year. G-III Apparel and WHP Complete Marc Jacobs Acquisition
• Positive Sentiment: BTIG reaffirmed its Buy rating and set a $40 price target, implying substantial upside from the current trading level. BTIG Analyst Rating
• Neutral Sentiment: Analyst views are mixed: Telsey cut its price target to $32 and moved to Market Perform, while other analysts emphasize the strength of G-III’s owned-brand strategy. G-III Apparel Market Overlooks Hidden Strength
• Negative Sentiment: Revenue fell 9.7% to $554.1 million, missing the $570.4 million consensus estimate. The decline reflects the loss of Calvin Klein and Tommy Hilfiger licenses and continuing European headwinds. G-III Apparel Mixed Q2 Read-Across
• Negative Sentiment: Third-quarter guidance of $1.35–$1.45 in EPS and approximately $870 million in revenue was below consensus expectations of $1.73 and $897.8 million, respectively. Marc Jacobs is expected to be slightly dilutive in fiscal 2027, increasing execution risk during the transition. G-III Apparel Sets Downbeat Outlook

Analysts Set New Price Targets

A number of brokerages have recently issued reports on GIII. Wall Street Zen cut G-III Apparel Group from a “buy” rating to a “hold” rating in a report on Saturday, August 15th. Telsey Advisory Group dropped their price objective on G-III Apparel Group from $38.00 to $32.00 and set a “market perform” rating for the company in a research note on Thursday. Zacks Research cut G-III Apparel Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 14th. BTIG Research restated a “buy” rating and issued a $40.00 target price on shares of G-III Apparel Group in a research note on Wednesday. Finally, KeyCorp reaffirmed an “overweight” rating and issued a $40.00 target price (up from $35.00) on shares of G-III Apparel Group in a report on Monday, June 8th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $31.80.

About G-III Apparel Group

G-III Apparel Group, Ltd. is a global fashion company engaged in the design, sourcing, marketing and distribution of women’s and men’s apparel, outerwear, footwear, handbags and fashion accessories. Founded in 1956 and headquartered in New York City, the company has grown from an importer of ladies’ apparel into a diversified apparel business with a portfolio of owned and licensed brands.

The company’s product offerings span a broad spectrum of price points and styles, including formal and casual outerwear, sportswear, performance wear and contemporary fashion.