G-III Apparel Q2 sales down, tariff impact expected

For the second quarter, G-III Apparel Group's net sales decreased 5 percent to 613.3 million dollars compared to the same period last year. Net income for the quarter was 10.9 million dollars, or 25 cents per diluted share, a decline from 24.2 million dollars, or 53 cents per diluted share, a year ago. G-III also repurchased 1.14 million of its shares for 24.6 million dollars during the quarter.

Commenting on the outlook, Morris Goldfarb, G-III’s chairman and CEO, said, “Looking ahead, we have updated fiscal 2026 guidance to reflect the current macro environment, a more cautious outlook from our retail partners, as well as the impact of tariffs on our top and bottom lines. We are actively mitigating tariff pressures through a combination of vendor participation, selective sourcing shifts, and targeted price increases.”

Looking ahead, G-III expects to face an incremental tariff cost of approximately 155 million dollars, which has been partially offset by vendor participation, sourcing shifts, and price increases. The remaining unmitigated impact is estimated at 75 million dollars, with the majority affecting the second half of the year.

For the full fiscal year 2026, the company projects net sales of approximately 3.02 billion dollars, down from 3.18 billion dollars in fiscal 2025. Net income is expected to be between 112 million dollars and 122 million dollars, or 2.53 dollars to 2.73 dollars per diluted share.

For the third quarter, G-III forecasts net sales of approximately 1.01 billion dollars and net income between 62 million dollars and 72 million dollars, both figures represent decline compared to the the same quarter last year.