G-III Apparel Group, LTD. (NASDAQ:GIII) shares are trading lower on Friday after the company reported first-quarter adjusted earnings per share of 19 cents, beating the analyst consensus estimate of 12 cents. Quarterly sales of $583.61 million (down 4% year over year), outpacing the Street view of $580.37 million.
“Our performance was fueled by double-digit growth of our key owned brands, DKNY, Karl Lagerfeld and Donna Karan, which largely offset the exit of the Calvin Klein jeans and sportswear businesses,” said CEO Morris Goldfarb.
Gross profit in the quarter under review decreased to $246.544 million from $258.893 million a year ago. Operating profit decreased to $8.476 million from $13.504 million.
Also Read: This Apparel Group ‘Not In A Panic Mode’ Over Trump Tariffs, Although Uncertainty Looms
The DKNY parent said that the inventories decreased 5% to $456.5 million this year compared to $479.7 million last year.
The company exited the quarter with cash and equivalents worth $257.785 million, compared with $508.434 million a year ago. Total debt decreased 96% to $18.7 million this year compared to $426.4 million last year.
Outlook
Due to tariff and macro uncertainty, G-III Apparel withdraws FY26 profit guidance and sees a $135 million unmitigated tariff hit, mostly in the second half.
G-III Apparel Group affirms FY2026 sales guidance of $3.14 billion vs $3.12 billion estimate.
As previously planned, the company continues to expect sales to be lower in the first half of fiscal 2026 than in the previous year, with acceleration expected in the second half of fiscal 2026.
G-III Apparel Group expects second-quarter EPS of $0.02–$0.12 and revenue of approximately $570 million versus the $621 million estimate.
Price Action: GIII shares are trading lower by 15.10% to $23.51 at last check Friday.
Read Next:
Rent The Runway Q1 Subscriber Growth Returns, Eyes Double-Digit Increase In FY25
Image by Copenhagen Stock via Shutterstock
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
G-III APPAREL GROUP (GIII): Free Stock Analysis Report
This article DKNY Parent Anticipates Tariff Hit, Withdraws Profit Outlook originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
