G-III Apparel Group, Ltd. Chairman and CEO Morris Goldfarb said in an earnings release on Thursday, March 12, that fiscal 2026, which ended on January 31, was a pivotal year for G-III. He said the strength and global recognition of the company’s brands, together with a disciplined operating model and strong balance sheet, enabled G-III to deliver solid performance despite a challenging environment. Still, external factors took a toll, as the bankruptcy of Saks Global led to one-time charges to address the fallout at the vendor level.

Net sales for fiscal 2026 decreased 7.0 percent to $2.96 billion, compared to $3.18 billion in the prior year.

“For the full year, our go-forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year,” Goldfarb continued. “I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy.”

Net income for the fiscal year amounted to $67.4 million, or $1.51 per diluted share, compared to $193.6 million, or $4.20 per diluted share, in the prior year. The 2026 results include $46.1 million of non-cash asset impairment charges, net of tax, equivalent to $1.04 per diluted share. Additionally, results reportedly include $17.5 million of bad debt expense, primarily tied to the bankruptcy of Saks Global, or the equivalent of 30 cents per diluted share, net of tax.

Non-GAAP net income per diluted share was $2.61 for the fiscal year ended January 31, compared to $4.42 in the prior year. Results include $17.5 million of bad debt expense, primarily tied to the bankruptcy of Saks Global, or the equivalent of 30 cents per diluted share, net of tax.

Fourth Quarter Summary
Net sales for the fiscal 2026 fourth quarter ended January 31, 2026, decreased 8.1 percent to $771.5 million, compared to $839.5 million in the prior-year fourth quarter.

The net loss for the fourth quarter was $31.9 million, or a loss of 76 cents per share, compared to net income of $48.8 million, or $1.07 per diluted share, in the prior-year fourth quarter. This year’s results include $45.0 million of non-cash asset impairment charges, net of tax, equivalent to $1.07 per share. Additionally, results include $17.5 million of bad debt expense, primarily tied to the bankruptcy of Saks Global, or the equivalent of 32 cents per share, net of tax.

Non-GAAP Diluted EPS was 30 cents per diluted share for the fourth quarter, compared to $1.27 per diluted share in the Q4 period in fiscal 2025. Results include $17.5 million of bad debt expense, primarily tied to the bankruptcy of Saks Global, or the equivalent of 30 cents per diluted share, net of tax.

Balance Sheet and Capital Allocation Summary
Cash and cash equivalents were $406.7 million at year-end, compared to $181.4 million at the prior year-end.

Inventories decreased 3.8 percent to $460.0 million at year-end, compared to $478.1 million at year-end fiscal 2025.

Capital return to shareholders of $54.0 million in fiscal 2026, consisting of $49.8 million of share repurchases and $4.2 million in dividend payments.

Cost Saving Initiatives
In an effort to enhance profitability, the company is implementing initiatives to drive operational savings and efficiencies, which it expects will result in run-rate savings of $25 million in fiscal 2028.

Outlook
The company has issued its outlook for the first quarter and full fiscal year ending January 31, 2027, which assumes tariffs reflecting the most recent 2025 IEEPA guidelines.

Goldfarb concluded, “Looking to fiscal 2027, we are building on the momentum of our go-forward portfolio, which we expect to deliver high-single digit growth for the year, helping to offset the significant lost sales as we exit the Calvin Klein and Tommy Hilfiger businesses. We are focused on driving gross margin expansion while streamlining our cost structure to unlock productivity and profitability across the business. With over $400 million of cash on the balance sheet, we enter fiscal 2027 from a position of strength, giving us the flexibility to invest in our own business as well as strategic opportunities, while continuing to return capital to shareholders.”

Fiscal 2027
Net sales for fiscal 2027 are expected to be approximately $2.71 billion, which incorporates the loss of $470 million of sales from Calvin Klein and Tommy Hilfiger products. This compares to net sales of $2.96 billion for fiscal 2026.

Net income is expected to be between $88.0 million and $92.0 million, or diluted earnings per share between $2.00 and $2.10. This compares to net income of $67.4 million, or $1.51 per diluted share, for fiscal 2026.

Non-GAAP net income is expected to be between $88.0 million and $92.0 million, or diluted earnings per share between $2.00 and $2.10. This compares with non-GAAP net income of $116.2 million and diluted earnings per share of $2.61 for fiscal 2026.

Adjusted EBITDA is expected to be between $158.0 million and $162.0 million compared to adjusted EBITDA of $192.4 million in fiscal 2026.

Net interest income is expected to be approximately $2.0 million.

The tax rate is estimated at 30.0 percent.

First Quarter Fiscal 2027  
Net sales for the first quarter of fiscal 2027 are expected to be approximately $530.0 million. This compares to net sales of $583.6 million in the prior-year first quarter.

Net loss for the first quarter of fiscal 2027 is expected to be between a loss of $18.0 million and $13.0 million, or a loss per share between 40 cents and 30 cents. This compares to net income of $7.8 million, or 17 cents per diluted share, in the fiscal 2026 first quarter.

Image courtesy G-III Apparel Group, Ltd. / Tommy Hilfiger