G-III Apparel Group Ltd

F:GI4

Earnings: Second-quarter earnings per diluted share were $0.26, ahead of the company’s $0.15-$0.25 guidance, helped by strong gross-margin expansion and expense discipline.

Sales: Net sales were $555 million, down 10% year over year, mainly because Calvin Klein and Tommy Hilfiger licenses are being exited; management said some sales shortfall reflected shipment timing and expects the business to remain on track.

Margins: Gross margin increased 440 basis points to 45.2%, driven by pricing, healthier full-price selling and a larger mix of higher-margin owned brands.

Portfolio: The go-forward portfolio grew at a high-single-digit rate, while Donna Karan sales rose more than 45% and wholesale sales in full-price channels increased more than 20%.

Marc Jacobs: The acquisition closed after quarter-end. The operating business is expected to generate approximately $360 million in global sales this year, with long-term potential to reach $1 billion in annual revenue for G-III.

Outlook: Fiscal 2027 sales guidance was reiterated at approximately $2.71 billion, while earnings-per-share guidance was raised to $2.20-$2.30. Marc Jacobs is excluded from the formal outlook and is expected to be slightly dilutive for the remainder of fiscal 2027.

Balance Sheet: The company ended the quarter with $529 million of cash and approximately $1 billion of available liquidity, while inventory declined 13% year over year.