Despite decline in sales and profits: G-III raises earnings forecast

The US textile group G-III Apparel Group Ltd. had to accept losses in sales and earnings in the third quarter of the 2025/26 financial year. Still, the parent company of brands like DKNY, Donna Karan, Karl Lagerfeld and Vilebrequin raised its full-year profit forecasts on Tuesday.

In the three months to October 31, group sales amounted to 988.6 million US dollars (914.5 million euros). This corresponded to a decline of nine percent compared to the same quarter of the previous year.

The net profit attributable to shareholders shrank by 29.8 percent to 80.6 million US dollars (69.3 million euros), but exceeded forecasts.

Chairman and CEO Morris Goldfarb was overall pleased with the results. “We delivered a strong third quarter in which the gross margin and earnings were well above our expectations,” he emphasized in a statement. The good development of its own brands, a “healthy share of revenue from products sold at full price” and the measures with which management was able to mitigate the effects of higher tariffs contributed in particular to this.

In view of the unexpectedly positive development in the third quarter, management raised its earnings forecasts for the entire financial year. The target range for earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items, which had previously been $198 to $208 million, was increased to $208 to $213 million. Diluted earnings per share are now expected to be between $2.72 and $2.82, up from previously forecast between $2.53 and $2.73.

However, the sales forecast was lowered from $3.02 billion to $2.98 billion.

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