G-III Apparel Group, Ltd.

What they do

G-III designs, sources, distributes, and markets apparel and accessories under owned and licensed brand names. Products include outerwear, dresses, sportswear, suits, athleisure, jeans, swimwear, handbags, footwear, small leather goods, cold weather accessories, and luggage. The company sells wholesale and through its own digital platforms and retail stores, with brands positioned at various price points across global channels.

Revenue drivers

• Owned Brands — Accounted for approximately 57% of net sales in fiscal 2026. Key brands include DKNY (net sales ~$650M in fiscal 2026), Donna Karan, Karl Lagerfeld, and Vilebrequin.
• Licensed Brands — Accounted for approximately 43% of net sales in fiscal 2026. Major licenses include Calvin Klein, Tommy Hilfiger, Levi's, Nautica, and Champion. The company is losing about $470M of sales from Calvin Klein and Tommy Hilfiger products in fiscal 2027.
• Team Sports — Licensed apparel and products under alliances with Collegiate Licensing Company, Major League Baseball, National Basketball Association, National Football League, National Hockey League, and Starter.

Recent performance

For Q1 fiscal 2027 (ended April 30, 2026), net sales decreased 8% to $536.0 million. Net income was $66.5 million, or $1.50 per diluted share, including a $77.9 million tax benefit from expected recovery of IEEPA tariffs. Non-GAAP net loss per share was ($0.21). Inventories decreased 8% to $417.9 million. Cash and cash equivalents were $394.2 million.

Strategy

The company is transforming into a brand-led portfolio, emphasizing owned brands, which grew from 47% of net sales in fiscal 2024 to 57% in fiscal 2026. A key initiative is the pending acquisition of Marc Jacobs in partnership with WHP Global, expected to accelerate growth. Management focuses on full-price selling, gross margin expansion, and disciplined execution. The company also licenses its owned brands in complementary categories and geographies to expand reach and generate royalty income.

Risks

• License dependence — Net sales of licensed products were 43.0% of fiscal 2026 net sales; failing to renew or maintain material license agreements could cause significant revenue loss.
• Customer concentration — Loss of one of the company's largest retail customers could materially adversely affect the business.
• Marc Jacobs acquisition risks — The pending acquisition may not close, and the business depends on a license agreement terminable under certain circumstances; integration may be delayed.
• Tariffs and trade policy — Changes in trade policies and tariffs, including IEEPA tariffs, could raise costs or disrupt supply chains; the company expects recovery of previously incurred tariffs.

Outlook

For fiscal 2027, management expects net sales of approximately $2.71 billion, reflecting the loss of approximately $470 million of Calvin Klein and Tommy Hilfiger sales. GAAP net income is guided to $171-$175 million ($3.85-$3.95 per diluted share), and non-GAAP net income to $95-$99 million ($2.15-$2.25 per share). The outlook assumes current IEEPA tariff rates and excludes any impact from the pending Marc Jacobs transaction.