Despite the decline in revenue, the company said its core brands posted mid-single-digit growth, supported by increased full-price sell-through and improved global brand relevance.
G-III Apparel Group reported net sales of $2.96 billion in FY26, down 7 percent year-over-year due to $254 million in lost sales from the PVH brand. Net income fell to $67.4 million. Own brands recorded mid-digit growth. The company expects FY27 sales of about $2.71 billion amid exits from the 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, a year earlier. The results included $46.1 million in noncash asset impairment charges and $17.5 million in bad debt expenses, largely related to the Saks Global bankruptcy, G-III said in a news release.
On an adjusted basis, non-GAAP diluted earnings per share (EPS) was $2.61, compared to $4.42 in fiscal 2025.
Meanwhile, in the fourth quarter (Q4), net sales decreased 8.1 percent to $771.5 million from $839.5 million in the same quarter a year ago. 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 year-earlier period. The quarterly results included $45 million in noncash asset impairment charges and $17.5 million in bad debt expenses tied primarily to Saks Global's bankruptcy.
Non-GAAP diluted earnings per share for the quarter were $0.3, compared to $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 decreased 3.8 percent to $460 million. During the year, the company returned $54 million to shareholders, including $49.8 million through share buybacks and $4.2 million in dividends. To improve profitability, G-III has launched operational initiatives that are expected to generate annual cost savings of $25 million by fiscal year 2028.
Morris Goldfarb, President and CEO of G-III said: “Fiscal 2026 was a pivotal year for G-III. The strength and global recognition of our brands, coupled with a disciplined operating model and a strong balance sheet, enabled us to deliver strong performance despite a challenging environment. Throughout the year, our advancement portfolio delivered strong results, led by our key own brands, with higher quality revenue, improved full-price sales and accelerated global relevance throughout the year. I am proud of the results our team delivered and the significant progress we made to advance our strategy. in the long term.”
Looking ahead, the company expects fiscal year 2027 (FY27) net sales of around $2.71 billion, reflecting the loss of approximately $470 million in sales from the 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 to $67.4 million and $1.51 per share in FY26. For the first quarter of FY27, G-III expects net sales of around $530 million, up from $583.6 million in the same quarter last year, and forecast a net loss of $13 million to $18 million, or $0.3 to $0.4 per share.
Goldfarb added: “Looking ahead to fiscal 2027, we are building momentum from our forward-looking pipeline, which we expect to deliver high-single-digit growth for the year, helping offset significant sales loss as we exit the Calvin Klein and Tommy Hilfiger businesses. We are focused on driving gross margin expansion while rationalizing our cost structure to unlock productivity and profitability across the business. With more than $400 million in cash on the balance sheet, we enter the year fiscal 2027 from a position of strength, giving us the flexibility to invest in our own business, as well as strategic opportunities, while we continue to return capital to shareholders.”
Fiber2Fashion News Desk (SG)
