G-III surprises in the first quarter and increases profit guidance

The US textile group G-III Apparel Group Ltd. was able to exceed expectations in the first quarter of the 2026/27 financial year. Management then raised its profit forecast for the full year.

According to an interim statement published on Friday, group sales in the period from February to April amounted to 536 million US dollars (465 million euros). This means that it fell by eight percent compared to the same quarter of the previous year, but was above the forecast. Management attributed the losses primarily to lower income from business with the Calvin Klein and Tommy Hilfiger brands. The corresponding license agreements are currently being gradually terminated.

However, the group was able to significantly increase its reported net profit. It grew from 7.8 to 66.5 million US dollars (57.8 million euros). The growth was driven by the expected recovery of $77.9 million in unlawful overcharges. Adjusted for special items, the group had to accept a net loss of $8.7 million, after achieving a surplus of $8.4 million in the same quarter of the previous year.

Chairman and CEO Morris Goldfarb was satisfied with the current results, “The quarter went better than expected. Both our net sales and our profit were above forecast,” he explained in a statement, emphasizing that the group was able to significantly increase its gross margin, not least due to the restriction of discounts.

In light of recent developments, the company raised its full-year earnings forecast. The net income target, which had previously been $88.0 million to $92.0 million, was increased to $171.0 million to $175.0 million. Adjusted for special effects, the surplus is expected to rise to between $95.0 and $99.0 million. The sales target remained unchanged and is still around 2.71 billion US dollars.

The possible effects of the takeover of the fashion house Marc Jacobs, announced in May, are not yet taken into account in the updated forecasts. As part of the agreed acquisition, G-III wants to acquire the brand together with the brand management company WHP Global. G-III will therefore take over the operational business of Marc Jacobs after the transaction is completed.

“Marc Jacobs is one of the most influential brands in fashion,” explained CEO Goldfarb. “We see tremendous potential to build on this strong foundation and drive long-term growth across categories, channels and geographies.”