US’ G-III Apparel’s FY26 sales fall 7% to $2.96 bn

American fashion company G-III Apparel Group, Ltd, owner of brands such as DKNY, Donna Karan, and Karl Lagerfeld has reported lower revenue and earnings for fiscal 2026 (FY26) ended January 31, 2026, with net sales declining 7 per cent year on year (YoY) to $2.96 billion. The decline was partly attributed to $254 million in lost sales from PVH brands, including Calvin Klein and Tommy Hilfiger products.

Despite the revenue drop, the company said its core owned brands recorded mid-single-digit growth, supported by stronger full-price sell-through and improving global brand relevance.

G-III Apparel Group has reported net sales of $2.96 billion in FY26, down 7 per cent YoY due to $254 million in lost PVH brand sales.
Net income fell to $67.4 million.
Owned brands posted mid-single-digit growth.
The company expects FY27 sales of about $2.71 billion amid exits from Calvin Klein and Tommy Hilfiger businesses, while focusing on cost savings and margin expansion.

Net income for FY26 fell to $67.4 million, or $1.51 per diluted share, compared with $193.6 million, or $4.20 per share, in the previous year. Results included $46.1 million in non-cash asset impairment charges and $17.5 million in bad debt expense, largely related to the bankruptcy of Saks Global, G-III said in a press release.

On an adjusted basis, non-GAAP diluted earnings per share (EPS) were $2.61, compared with $4.42 in fiscal 2025.

Meanwhile, in the fourth quarter (Q4), net sales decreased 8.1 per cent to $771.5 million from $839.5 million in the same quarter a year earlier. The company reported a net loss of $31.9 million, or $0.76 per share, in the fourth quarter, compared with net income of $48.8 million, or $1.07 per share, in the prior-year period. Quarterly results included $45 million in non-cash asset impairment charges and $17.5 million in bad debt expense linked mainly to the Saks Global bankruptcy.

Non-GAAP diluted EPS for the quarter were $0.3, compared with $1.27 in the same period last year.

G-III ended fiscal 2026 with cash and cash equivalents of $406.7 million, up from $181.4 million a year earlier. Inventories declined 3.8 per cent to $460 million. During the year, the company returned $54 million to shareholders, including $49.8 million through share repurchases and $4.2 million in dividends. To improve profitability, G-III has launched operational initiatives expected to deliver annual run-rate cost savings of $25 million by fiscal 2028.

Morris Goldfarb, G-III’s chairman and CEO said, “Fiscal 2026 was a pivotal year for G-III. The strength and global recognition of our brands, together with a disciplined operating model and strong balance sheet, enabled us to deliver solid performance despite a challenging environment. For the full year, our go forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year. I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy.”

Looking ahead, the company expects fiscal 2027 (FY27) net sales of around $2.71 billion, reflecting the loss of approximately $470 million in sales from Calvin Klein and Tommy Hilfiger businesses. Net income for FY27 is projected between $88 million and $92 million, translating to EPS of $2-2.1, compared with $67.4 million and $1.51 per share in FY26. For the first quarter of FY27, G-III expects net sales of about $530 million, down from $583.6 million in the same quarter last year, and forecasts a net loss of $13-18 million, or $0.3-0.4 per share.

Goldfarb added, “Looking to fiscal 2027, we are building on the momentum of our go-forward portfolio, which we expect to deliver high-single digit growth for the year, helping to offset the significant lost sales as we exit the Calvin Klein and Tommy Hilfiger businesses. We are focused on driving gross margin expansion while streamlining our cost structure to unlock productivity and profitability across the business. With over $400 million of cash on the balance sheet, we enter fiscal 2027 from a position of strength, giving us the flexibility to invest in our own business as well as strategic opportunities, while continuing to return capital to shareholders.”

Fibre2Fashion News Desk (SG)