G-III Apparel Reports Q2 Earnings with Stronger Than Expected Results Amid License Exits
G-III Apparel (NYSE: GIII) reported second-quarter results for fiscal year 2027, showing a decline in net sales to $554.1 million due primarily to the exit of Calvin Klein and Tommy Hilfiger licenses. Despite this reduction, gross margin improved significantly by 440 basis points to 45.2%, driven by pricing actions and higher full-price selling. Non-GAAP earnings per diluted share came in at $0.26, surpassing guidance between $0.15 and $0.25 for the quarter. GAAP net income was even stronger at $0.46 due to a $134 million tariff refund and interest received during the period. The company also reported strong growth across its owned brands like Donna Karan and DKNY, with digital sales increasing significantly. Looking ahead, G-III raised full-year non-GAAP earnings guidance to between $2.20 and $2.30 per diluted share due to better-than-expected performance in the second quarter.
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