G-III Apparel Group reported fiscal second-quarter 2027 net sales of $554.1 million, down 10% from $613.3 million a year earlier, while sales from its go-forward portfolio increased at a high-single-digit rate.
Gross margin expanded 440 basis points to 45.2%, reflecting price increases and a continued shift toward higher-margin owned brands. Net income increased to $20.2 million, or $0.46 per diluted share, from $10.9 million, or $0.25 per share. Non-GAAP EPS was $0.26.
G-III ended the quarter with $529.2 million in cash, up from $301.8 million a year earlier, while inventories declined 13%. The company returned $12.2 million to shareholders through share repurchases and dividends.
G-III also completed its acquisition of Marc Jacobs and said the brand is targeting $1 billion in long-term annual revenue. The company’s current fiscal 2027 guidance excludes the impact of Marc Jacobs, which it expects to be slightly dilutive this fiscal year before becoming accretive after the first 12 months.
G-III expects fiscal 2027 net sales of approximately $2.71 billion, GAAP EPS of $4.10 to $4.20, non-GAAP EPS of $2.20 to $2.30 and adjusted EBITDA of $174 million to $178 million.
KEY QUOTE:
“Our second quarter results reflect strong execution across the organization, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go-forward portfolio grew at a high-single digit rate during the quarter, reinforcing our confidence in the power of our brands and business model. Our strategic transformation has taken a meaningful step forward with the addition of Marc Jacobs. The acquisition significantly strengthens our portfolio and further enhances our position as a global fashion leader. I am extremely optimistic about the future of G-III and believe we have the brands, capabilities, and financial flexibility to capitalize on the opportunities ahead and create long-term value for our shareholders.”
Morris Goldfarb, Chairman and Chief Executive Officer of G-III Apparel Group
