G-III Apparel Group, Ltd. pointed to fiscal 2025 as “an incredible year,” which was marked by robust top- and bottom-line growth.

“Our world-class teams demonstrated strong execution of our strategic priorities, including bringing four new brands to market and driving outsized growth of our owned brands,” commented company Chairman and CEO Morris Goldfarb. “We are confident in the power of our brands and business model. We believe the momentum of our key owned brands DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin will continue to deliver double-digit sales increases. This growth will help offset the reduced sales of our Calvin Klein and Tommy Hilfiger businesses as we transition out of those licenses. Our strong financial position, together with our proven track record, provides us with ample flexibility to invest in our future. G-III is undergoing an incredible transformation, and we are committed to delivering long-term growth and creating shareholder value.”

Fourth Quarter Fiscal 2025 Financial Results
Net sales for the fourth quarter ended January 31 increased 9.8 percent to $839.5 million compared to $764.8 million in the prior-year fourth quarter.

Net income for the fourth quarter was $48.8 million, or $1.07 per diluted share, compared to $28.9 million, or 61 cents per diluted share, in the prior-year fourth quarter.

Non-GAAP net income per diluted share was $1.27 for the fourth quarter, compared to 76 cents in the prior-year Q4 period. Non-GAAP net income per diluted share excludes:

  1. asset impairments of $8.2 million in the fourth quarter compared to $6.5 million in the prior-year fourth quarter,
  2. in the fourth quarter of fiscal 2025, $1.3 million in one-time severance expenses related to a closed warehouse,
  3. in the fourth quarter of fiscal 2024, incentive compensation expenses of $0.6 million related to the Karl Lagerfeld transaction,
  4. in the fourth quarter of fiscal 2024, non-cash imputed interest expense of $0.2 million related to the note issued to seller as part of the consideration for the acquisition of Donna Karan International,
  5. in the fourth quarter of fiscal 2024, $3.1 million in one-time expenses primarily related to the DKNY business in China, and
  6. in the fourth quarter of fiscal 2024, the gain recorded from the reduction of the earn-out liability related to the Sonia Rykiel acquisition of $(1.0) million.

The aggregate effect of these exclusions was equal to 20 cents per diluted share in the fourth quarter of fiscal 2025 and 15 cents per diluted share in the fourth quarter of fiscal 2024.

Fiscal 2025 Summary
Net sales for the fiscal year ended January 31, 2025 increased 2.7 percent to $3.18 billion compared to $3.10 billion in the prior year.

Net income for the fiscal year ended January 31, 2025 was $193.6 million, or $4.20 per diluted share, compared to $176.2 million, or $3.75 per diluted share, in the prior year.

Non-GAAP net income per diluted share was $4.42 for the fiscal year ended January 31, compared to $4.04 in the prior year. Non-GAAP net income per diluted share excludes:

  1. asset impairments of $8.2 million in fiscal 2025 compared to $6.8 million in the prior year,
  2. one-time severance expenses of $1.9 million related to a closed warehouse in fiscal 2025,
  3. a $1.6 million write-off of deferred financing costs related to the redemption of our senior secured notes in fiscal 2025,
  4. a $(0.6) million gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of the DKNY business in China that was not already owned in fiscal 2025,
  5. incentive compensation expenses of $6.1 million related to the Karl Lagerfeld transaction in the prior year,
  6. non-cash imputed interest expense of $3.8 million related to the Seller Note in the prior year,
  7. one-time expenses of $3.1 million primarily related to the DKNY business in China in the prior year and
  8. the gain recorded from the reduction of the earn-out liability related to the Sonia Rykiel acquisition of $(1.0) million in the prior year. The aggregate effect of these exclusions was equal to 22 cents per diluted share in fiscal 2025 and 29 cents per diluted share in the prior year.

“We delivered record non-GAAP earnings per diluted share of $4.42, a 9 percent increase over last year and above our expectations, while also expanding gross margins,” noted Goldfarb. “These results were achieved despite a very challenging operating environment, and I want to thank our global teams for their unwavering efforts.”

Balance Sheet as of Fourth Quarter Fiscal 2025

Inventories decreased 8 percent to $478.1 million this year compared to $520.4 million last year. Total debt decreased 99 percent to $6.2 million in fiscal 2025 compared to $417.8 million in the prior year. In August 2024, the company voluntarily redeemed the entire $400.0 million principal amount of notes at a redemption price equal to 100 percent of the principal amount of the notes plus accrued and unpaid interest. The payment was made with cash on hand and borrowings from the revolving credit facility.

Outlook

For the fiscal year ending January 31, 2026:

  • Net sales are expected to be approximately $3.14 billion. This compares to net sales of $3.18 billion for fiscal 2025.
  • Net income is expected to be between $192.0 million and $197.0 million, or diluted earnings per share between $4.15 and $4.25. This compares to net income of $193.6 million, or $4.20 per diluted share, for fiscal 2025.
  • Non-GAAP net income for fiscal 2026 is expected to be between $192.0 million and $197.0 million, or diluted earnings per share between $4.15 and $4.25. This compares to non-GAAP net income of $203.6 million, or diluted earnings per share of $4.42 for fiscal 2025.
  • Adjusted EBITDA for fiscal 2026 is expected to be between $310.0 million and $315.0 million compared to adjusted EBITDA of $325.9 million in fiscal 2025.
  • Net interest expense is expected to be approximately $9.0 million.
  • Tax rate for fiscal 2026 is estimated to be 28.5 percent.

For the fiscal first quarter ending April 30, 2026:

  • Net sales are expected to be approximately $580.0 million. This compares to net sales of $609.7 million in the fiscal 2025 first quarter.
  • Net income is expected to come in between $2.0 million and $7.0 million, or diluted earnings per share between 5 cents and 15 cents. This compares to net income of $5.8 million, or 12 cents per diluted share, in the fiscal 2025 first quarter.

Image courtesy G-III Apparel Group, Ltd./DKNY