G-III reports negative fiscal 2026 results and strategic transition

US-based fashion company G-III Apparel Group has announced its financial results for the fourth quarter and full fiscal year 2026, ended January 31, 2026. The group reported a decrease in annual net sales as it navigates the planned exit of its licenses for Calvin Klein and Tommy Hilfiger.

For the full fiscal year, net sales reached 2.96 billion dollars, representing a 7 percent decrease compared to 3.18 billion dollars in the prior year. Net income for the period was 67.4 million dollars, or 1.51 dollars per diluted share, down from 193.6 million dollars, or 4.20 dollars per diluted share, in fiscal 2025.

Chairman and chief executive officer of G-III, Morris Goldfarb, described fiscal 2026 as a pivotal year for the group. Goldfarb noted that the portfolio of owned brands produced strong results with improved full-price sell-throughs.

Fourth quarter performance impacted by impairment charges

Net sales for the fourth quarter decreased 8.1 percent to 771.5 million dollars, down from 839.5 million dollars in the same period last year. The company recorded a net loss of 31.9 million dollars for the quarter, compared to a net income of 48.8 million dollars in the previous year.

The quarterly results were affected by 45 million dollars in non-cash asset impairment charges. Furthermore, the company reported 17.5 million dollars in bad debt expense, which G-III attributed primarily to the bankruptcy of US-based retailer Saks Global.

The group is currently implementing operational efficiency initiatives intended to result in run-rate savings of 25 million dollars by fiscal 2028. These measures are designed to enhance profitability as the company restructures its cost base.

Outlook for fiscal 2027

G-III provided guidance for the upcoming fiscal year ending January 31, 2027. Net sales are expected to be approximately 2.71 billion dollars, a figure that accounts for the loss of 470 million dollars in sales from the exiting Calvin Klein and Tommy Hilfiger businesses.

Net income for fiscal 2027 is projected to be between 88 million dollars and 92 million dollars. Adjusted EBITDA is forecast to be between 158 million dollars and 162 million dollars, compared to 192.4 million dollars in fiscal 2026.

For the first quarter of fiscal 2027, the group anticipates net sales of approximately 530 million dollars. Goldfarb stated that the company enters the new year from a position of strength, supported by 406.7 million dollars of cash and cash equivalents on the balance sheet.