G-III Apparel Group Reports Decline in Sales and Net Income for Third Quarter

G-III Apparel Group, Ltd. reported a decline in financial performance for the three and nine months ended October 31, 2025, as detailed in its latest 10-Q filing. The company recorded net sales of $988.6 million for the third quarter, down from $1.09 billion in the same period last year. For the nine-month period, net sales decreased to $2.19 billion from $2.34 billion. The decline was primarily attributed to a significant drop in sales from Calvin Klein and Tommy Hilfiger licensed products, which fell by $122.5 million in the third quarter and $209.4 million year-to-date, largely due to expired licenses. However, sales from G-III's owned brands, including DKNY and Karl Lagerfeld, saw increases, partially offsetting the losses.

The company's gross profit for the third quarter was $381.5 million, representing 38.6% of net sales, compared to $432.1 million or 39.8% in the prior year. The decrease in gross profit percentage was influenced by tariffs and reduced profitability from digital sales of certain products. Selling, general, and administrative expenses slightly increased to $260.4 million from $259.2 million year-over-year, driven by higher professional fees and legal costs. The company also recorded $1.6 million in asset impairments related to an e-commerce platform replacement.

In terms of operational metrics, G-III's retail segment saw an increase in sales to $45.7 million, up from $42.3 million, despite a reduction in the number of retail stores from 51 to 47. The increase was attributed to stronger sales through the Donna Karan website and Karl Lagerfeld Paris stores. The company reported a net income of $80.6 million for the third quarter, down from $114.8 million in the same period last year, with a basic net income per share of $1.91 compared to $2.62 previously.

Strategically, G-III Apparel Group has made significant organizational changes, including the acquisition of the remaining 25% interest in its joint venture Fabco, which operates the DKNY and Donna Karan brands in China, making it a wholly-owned subsidiary. The company is also focusing on expanding its portfolio of licensed brands, having recently launched new licenses for Nautica, Halston, Champion, Converse, and BCBG. The company continues to explore opportunities for growth through acquisitions and new licensing agreements.

Looking ahead, G-III Apparel Group remains cautious about the impact of external factors such as inflation, tariffs, and geopolitical tensions on its operations. The company is committed to enhancing its product offerings and expanding its digital presence to adapt to changing consumer preferences. With cash and cash equivalents of $184.1 million and a revolving credit facility availability of approximately $700 million as of October 31, 2025, G-III is positioned to navigate the challenges ahead while continuing to invest in its growth strategies.