G-III Apparel Group, Ltd. (NASDAQ: GIII) reported first-quarter fiscal 2027 results on June 5, 2026, with net sales and earnings both exceeding the company's prior guidance, and raised its full-year earnings outlook for fiscal 2027.
Net sales for the quarter ended April 30, 2026 totalled $536.0 million, down 8% from $583.6 million in the same period last year. The year-over-year decline reflects the phased expiration of the company's Calvin Klein and Tommy Hilfiger licenses, a transition G-III has been managing across recent periods as it rebalances toward wholly owned brands.
#Tariff Recovery Drives GAAP Earnings Surge
GAAP net income for the quarter was $66.5 million, or $1.50 per diluted share, compared to $7.8 million, or $0.17 per diluted share, in the prior-year period. The result includes a $77.9 million after-tax benefit tied to the expected recovery of tariffs previously paid under the International Emergency Economic Powers Act (IEEPA) on inventory sold in the prior year, equivalent to $1.75 per diluted share.
Excluding that benefit, non-GAAP net loss per share was ($0.21), compared to non-GAAP net income of $0.19 per diluted share in the year-ago period. The adjusted loss was narrower than the analyst consensus estimate of ($0.31), according to data from FactSet. Non-GAAP gross margin expanded 350 basis points to 45.7% from 42.2%, which the company attributed to continued momentum in its go-forward brand portfolio and full-price selling trends.
"The quarter was better than expected with both our net sales and earnings coming in ahead of guidance," Chairman and Chief Executive Officer Morris Goldfarb said in the earnings release. "We are raising our earnings guidance for fiscal 2027."
#Full-Year Guidance Raised Across GAAP and Non-GAAP Metrics
G-III raised its fiscal 2027 full-year outlook. The company now expects GAAP net income of $171.0 million to $175.0 million, or diluted EPS of $3.85 to $3.95. Non-GAAP net income is projected at $95.0 million to $99.0 million, or $2.15 to $2.25 per diluted share.
Adjusted EBITDA is forecast in the range of $178.0 million to $182.0 million. The company said the raised guidance assumes tariffs for the remainder of the year will approximate rates that existed under the IEEPA regime.
For the second quarter ending July 31, 2026, G-III projected net sales of approximately $570.0 million and net income of $7.0 million to $11.0 million, or $0.15 to $0.25 per diluted share.
Full-year net sales are expected to be approximately $2.71 billion, incorporating an estimated $470 million reduction from the expiry of the Calvin Klein and Tommy Hilfiger licenses. This compares to net sales of $2.96 billion in fiscal 2026.
#Shares Rise on Earnings Day
GIII shares rose approximately 6.8% on June 5, trading near $34.21, close to the stock's 52-week high of $34.83, according to Benzinga Pro data. The move followed the earnings beat and raised guidance. While revenue was below analyst consensus, the company stated results exceeded its own guidance because first-quarter sales were above its forecast of about $530 million.
#Marc Jacobs Acquisition Adds Strategic Variable
G-III separately announced a pending acquisition of the Marc Jacobs brand in partnership with WHP Global. The company said the transaction is not included in its fiscal 2027 guidance. G-III incurred $3.4 million in acquisition-related professional fees during the first quarter.
The acquisition remains subject to regulatory approval. G-III cited risks including the ability to complete the transaction in the anticipated timeframe, receipt of regulatory approvals, and the ability to realise anticipated benefits following closing.
G-III ended the quarter with cash and cash equivalents of $394.2 million, up from $257.8 million a year earlier. Inventories declined 8% to $417.9 million. The company paid $4.2 million in dividends during the quarter.
G-III designs, sources, and distributes apparel under a portfolio of more than 30 owned and licensed brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, alongside licensed names such as Levi's, Champion, and major North American sports leagues. The company competes with other multi-brand apparel licensors and brand owners across wholesale and retail channels.
G-III projected GAAP diluted EPS of $3.85 to $3.95 for fiscal 2027, compared to $1.51 in fiscal 2026, though the company noted the year-over-year increase reflects the one-time IEEPA tariff benefit recorded in the first quarter. Execution risks remain, including the transition away from Calvin Klein and Tommy Hilfiger volumes, tariff assumptions that may not hold, the outcome of the Marc Jacobs regulatory process, and broader macroeconomic conditions. G-III said it assumes no obligation to update forward-looking statements in the release.