G-III Apparel Reports Decrease in Net Sales for Q1 Fiscal 2026

G-III Apparel Group, Ltd. reported a decrease in net sales for the first quarter of fiscal 2026, with revenues falling to $583.6 million from $609.7 million in the same period last year. The decline was primarily driven by a $58.1 million drop in sales from licensed products under the Calvin Klein and Tommy Hilfiger brands, alongside a decrease in third-party private label products. However, this was partially offset by a $40.9 million increase in sales from G-III's owned brands, including DKNY, Donna Karan, and Karl Lagerfeld, particularly in the jeanswear and dresses categories.

The company's gross profit for the quarter was $246.5 million, representing 42.2% of net sales, slightly down from 42.5% in the prior year. The gross profit margin in the wholesale segment decreased to 40.4% from 40.9%, attributed to a less favorable product mix. Conversely, the retail segment saw an increase in gross profit margin to 53.5%, up from 47.0%, due to improved product assortment and higher digital sales of Donna Karan products. Selling, general, and administrative expenses decreased to $231.5 million from $236.6 million, reflecting lower advertising and compensation expenses.

In terms of strategic developments, G-III Apparel completed the acquisition of the remaining 25% interest in its joint venture, Fabco Holding B.V., in April 2024, making it a wholly-owned subsidiary. This acquisition is expected to enhance G-III's operational capabilities in the Chinese market. The company also reported a significant increase in its allowance for doubtful accounts, primarily due to the bankruptcy of certain wholesale customers, including Hudson's Bay Company, which resulted in a $2.6 million increase in reserves.

Operationally, G-III's retail segment reported an increase in sales to $36.4 million, up from $30.5 million, despite a reduction in the number of retail stores from 52 to 48. The company continues to focus on expanding its digital presence and enhancing customer engagement through various channels. As of April 30, 2025, G-III had cash and cash equivalents of $257.8 million and availability under its revolving credit facility of approximately $480 million, indicating a solid liquidity position.

Looking ahead, G-III Apparel anticipates challenges due to ongoing economic conditions, including inflation and supply chain disruptions. The company is actively monitoring the impact of recent tariff changes and geopolitical tensions on its operations. G-III remains committed to diversifying its product offerings and expanding its brand portfolio to mitigate risks associated with the expiration of key licenses and to capitalize on growth opportunities in the apparel market.