G-III Apparel misses Q3 sales estimates, slightly lowers FY forecast

Overview

• G-III fiscal Q3 net sales decrease 9% yr/yr, missing analysts' expectations

• Adjusted EPS for fiscal Q3 beats consensus, driven by strong brand performance

• Company introduces first-ever quarterly dividend of $0.10 per share

Outlook

• Company raises fiscal 2026 net income guidance to $121 mln-$126 mln from $112 mln-$122 mln

• Company slightly lowers fiscal 2026 net sales forecast to $2.98 bln from $3.02 bln

• Company anticipates $65 mln unmitigated impact from tariffs in fiscal 2026

Result Drivers

• OWNED BRANDS - Strong performance of owned brands contributed to exceeding earnings expectations

• TARIFF MITIGATION - Effective tariff mitigation strategies helped maintain margins

• FULL-PRICE SALES - Healthy mix of full-price sales supported gross margin

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for G-III Apparel Group Ltd is $31.00, about 4.5% above its December 8 closing price of $29.67

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX7jVJ6k

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)