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G-III Apparel Group (GIII)
NASDAQ:GIII

G-III Apparel Group (GIII) AI Stock Analysis

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GIII

G-III Apparel Group

(NASDAQ:GIII)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$35.00
▲(18.89% Upside)
Action:ReiteratedDate:12/19/25
G-III Apparel Group's overall stock score of 71 reflects its strong technical indicators and stable financial performance, despite challenges in revenue growth and margin pressures from tariffs. The company's strategic initiatives, including a new dividend program and stock awards, support long-term growth and shareholder value.
Positive Factors
Strong Cash Position
A strong cash position enhances financial flexibility, allowing G-III to invest in growth opportunities, manage debt, and return capital to shareholders.
Growth in Owned Brands
Significant growth in owned brands like Donna Karan and Karl Lagerfeld strengthens G-III's brand portfolio, reducing reliance on licensed brands and enhancing long-term profitability.
Introduction of Dividend Program
The initiation of a dividend program signals confidence in financial stability and commitment to shareholder returns, supporting long-term investor interest.
Negative Factors
Decline in PVH Licensed Brands
The decline in PVH licensed brands sales weakens G-III's revenue base, necessitating strategic adjustments to mitigate long-term impacts on growth.
Impact of Tariffs on Gross Margin
Tariff impacts on gross margins could pressure profitability, requiring cost management and strategic sourcing to maintain financial health.
Decrease in Net Sales
A decrease in net sales indicates challenges in maintaining market share and revenue growth, necessitating strategic initiatives to reverse the trend.

G-III Apparel Group (GIII) vs. SPDR S&P 500 ETF (SPY)

G-III Apparel Group Business Overview & Revenue Model

Company DescriptionG-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores. The company also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is headquartered in New York, New York.
How the Company Makes MoneyG-III Apparel Group primarily generates revenue through the wholesale distribution of its apparel products to retailers and department stores. The company also earns income from its retail operations, including branded and licensed stores. Key revenue streams include sales from both licensed and private-label brands, with royalties from licensing agreements contributing significantly to its earnings. G-III has established important partnerships with major retailers, which allows it to leverage their distribution networks and reach a broader audience. Additionally, the company invests in marketing and brand development to enhance its product appeal and drive sales, contributing further to its financial performance.

G-III Apparel Group Earnings Call Summary

Earnings Call Date:Mar 12, 2026
(Q4-2026)
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% Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: notable strategic progress and strong execution in the company’s owned brands, improved digital momentum, disciplined inventory management, and a healthy liquidity position were offset by meaningful near-term revenue and earnings pressure from the exit of large PVH licenses, a one-time Saks bankruptcy bad debt ($17.5M) and tariff-related margin headwinds. Management offered a multi-year margin expansion thesis (up to ~300 bps) and identified $25M of run-rate savings, but guidance for fiscal 2027 reflects lower sales, lower EBITDA and a first-quarter loss, indicating a near-term transitional period despite clear long-term strategic upside.
Q4-2026 Updates
Positive Updates
Owned Brands Driving Growth and Mix Improvement
Key owned brands (DKNY, Donna Karan, Karl Lagerfeld and Vilebrequin) collectively delivered mid-single-digit growth for fiscal 2026 and increased to ~60% of revenue (from ~50% prior year), improving full-price sell-through and contributing to margin expansion.
Donna Karan Rapid Rebound and Digital Momentum
Donna Karan grew ~40% in fiscal 2026; donnakaran.com sales grew ~170% with traffic up >120%; acquired ~100,000 new customers and repeat customers represented ~20% of sales, supporting strong wholesale and DTC momentum.
DKNY and Karl Lagerfeld Strong Brand Performance
DKNY reported ~ $650M in reported net sales with dkny.com sales up ~40% and social engagement up ~300%; Karl Lagerfeld grew high single digits (NA sales high-teens), karl.com +20%, and Karl Lagerfeld Jeans +30% driving youth engagement.
Solid Liquidity and Capital Returns
Ended fiscal year with $407M cash and >$900M total liquidity after returning >$50M to shareholders through share repurchases and initiating a cash dividend, supporting financial flexibility for investment and M&A/licensing opportunities.
Inventory Discipline and Efficiency Gains
Inventories down 4% year-over-year to $460M with unit declines in the high-single-digits; company reported improving warehouse efficiency in H2 and identified $25M of run-rate cost savings to be realized by fiscal 2028.
Margin Improvement Opportunity Articulated
Management expects up to ~300 basis points of gross margin expansion in fiscal 2027 (150 bps in Q1 expected), driven by tariff mitigation, a higher mix of owned brands and other margin efforts; FY26 margins also 'ahead of expectations' on better mix despite tariff headwinds.
Licensed Portfolio Growth and New Opportunities
Licensed brands (excluding exited PVH licenses) generated mid-single-digit growth; team sports and Converse contributed to a licensed portfolio that generated >$130M net sales in FY26 with a stated path to $500M over time.
Negative Updates
Top-Line Decline Due to Exiting PVH Licenses
Full-year net sales declined to $2.96B from $3.18B the prior year, a ~6.9% decrease, driven primarily by a $254M decline from Calvin Klein and Tommy Hilfiger licensing exits; FY27 sales guidance is ~$2.71B (~8% decline vs FY26) reflecting continued roll-offs.
Significant Earnings Pressure and One-Time Bad Debt
Non-GAAP net income fell to $116M (FY26) from $204M prior year (-~43%); non-GAAP EPS declined to $2.61 from $4.42 (-~41%). A $17.5M bad debt charge related to the Saks bankruptcy reduced Q4 earnings by approximately $0.30 per share and increased SG&A.
Quarterly and Near-Term Sales Weakness
Q4 net sales were $771M, down ~8% year-over-year (771 vs 840); management stopped ~$20M of shipments to Saks which negatively impacted results. Q1 FY27 sales guidance is ~$530M vs $584M prior (-~9.2%), with an expected Q1 net loss of $13M–$18M.
Margin Headwinds from Tariffs
Gross margin for FY26 was 39.4% vs 40.8% prior (down ~140 bps); management cited approximately $65M of unmitigated tariff impact for the year, and Q4 margins fell to 37.0% from 39.5% (down ~250 bps) with tariffs noted as the largest quarterly impact.
Guidance Indicates Lower Profitability Next Year
FY27 non-GAAP EPS guidance of $2.00–$2.10 compares to $2.61 in FY26 (down ~19%–23%); adjusted EBITDA guidance of $158M–$162M vs $192M in FY26 (down ~15%–18%), reflecting near-term deleverage from lost license volume.
SG&A Deleverage and Increased Expense Ratios
Non-GAAP SG&A increased to $975M (33% of sales) in FY26 from $968M (30.4% of sales) last year, driven in part by the Saks bad debt; management expects SG&A deleverage in FY27 as investments (marketing, talent, technology) continue while top-line is impacted by license roll-offs.
Concentration and Transition Risk from License Roll-Offs
Calvin Klein and Tommy Hilfiger still represented ~ $830M in revenue in FY26 but are expected to decline to ~ $360M in FY27 before fully rolling off in FY28, creating near-term top-line and margin transition risk despite long-term strategic benefits.
Earnings Volatility and Short-Term Loss Expectation
Company expects a first quarter net loss and lower full-year earnings driven by timing of marketing spend and front-loaded deleverage; management has not modeled share repurchases into FY27 guidance, indicating cautious capital deployment near term.
Company Guidance
The company guided fiscal 2027 net sales of about $2.71 billion (down ~8% year‑over‑year), reflecting an approximate $470 million reduction from expiring Calvin Klein and Tommy Hilfiger businesses while its go‑forward portfolio is expected to grow high single digits; non‑GAAP net income is forecast at $88–$92 million (non‑GAAP diluted EPS $2.00–$2.10), adjusted EBITDA $158–$162 million (vs. $192 million in FY2026), and first‑quarter FY27 net sales of roughly $530 million with a Q1 net loss of $13–$18 million (loss of $0.30–$0.40 per share) versus prior‑year Q1 non‑GAAP income of $8.4 million ($0.19); management expects gross margin expansion (about 150 bps in Q1 and up to 300 bps for the year), SG&A deleverage driven by higher marketing and scaling investments, no share repurchases built into guidance, identified $25 million of run‑rate cost savings by FY2028, net interest income of ~$2 million, an estimated tax rate of 30%, and capital expenditures around $40 million (guidance assumes current tariff rates/2025 IEPA policies and no tariff refunds).

G-III Apparel Group Financial Statement Overview

Summary
G-III Apparel Group shows stable financial performance with strong profitability and cash generation capabilities. Despite a slight decline in revenue growth, the company maintains healthy margins and a solid balance sheet with low leverage. Positive cash flow trends further support its financial health.
Income Statement
65
Positive
G-III Apparel Group's income statement shows mixed results. The TTM data indicates a slight decline in revenue growth at -2.51%, which is concerning. However, the company maintains a healthy gross profit margin of 39.5% and a net profit margin of 5.81%. The EBIT margin is strong at 11.61%, indicating efficient cost management. Despite the revenue decline, profitability metrics remain robust, suggesting resilience in core operations.
Balance Sheet
72
Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.59% in the TTM period, showcasing prudent leverage management. The return on equity is decent at 10.85%, indicating effective use of equity to generate profits. The equity ratio stands at 64.85%, highlighting a strong equity base relative to total assets, which enhances financial stability.
Cash Flow
68
Positive
Cash flow analysis reveals positive trends with a free cash flow growth rate of 3.93% in the TTM period. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio is high at 94.38%, indicating strong cash generation relative to net income. This suggests good liquidity and the ability to fund operations and investments internally.
BreakdownJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue2.96B3.18B3.10B3.23B2.77B
Gross Profit1.16B1.27B1.21B1.07B960.56M
EBITDA185.57M328.71M317.62M322.48M383.52M
Net Income67.35M193.57M176.17M-133.06M200.59M
Balance Sheet
Total Assets2.61B2.48B2.68B2.71B2.74B
Cash, Cash Equivalents and Short-Term Investments406.66M181.44M507.83M191.65M465.98M
Total Debt11.74M277.68M652.67M446.33M232.63M
Total Liabilities850.50M803.75M1.13B1.33B1.22B
Stockholders Equity1.76B1.68B1.55B1.39B1.52B
Cash Flow
Free Cash Flow0.00273.11M562.90M-126.21M154.29M
Operating Cash Flow0.00316.40M587.58M-104.60M185.80M
Investing Cash Flow0.00-148.15M-28.33M-217.96M-51.51M
Financing Cash Flow0.00-485.51M-244.63M51.63M-23.44M

G-III Apparel Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.44
Price Trends
50DMA
29.65
Negative
100DMA
29.34
Negative
200DMA
27.22
Negative
Market Momentum
MACD
-1.10
Positive
RSI
29.47
Positive
STOCH
20.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Negative. The current price of 29.44 is above the 20-day moving average (MA) of 29.43, below the 50-day MA of 29.65, and above the 200-day MA of 27.22, indicating a bearish trend. The MACD of -1.10 indicates Positive momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIII.

G-III Apparel Group Risk Analysis

G-III Apparel Group disclosed 30 risk factors in its most recent earnings report. G-III Apparel Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

G-III Apparel Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.10B18.623.88%-2.61%-11.87%
69
Neutral
$20.69B15.1334.74%0.93%12.32%29.40%
68
Neutral
$2.88B17.0010.53%2.18%2.76%-7.83%
64
Neutral
$2.85B215.896.99%0.22%0.52%-45.80%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
$6.41B6.0114.79%1.95%-3.12%
45
Neutral
$2.57B-29.46%-6.35%-565.47%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GIII
G-III Apparel Group
26.05
-0.52
-1.94%
COLM
Columbia Sportswear
55.00
-19.75
-26.42%
PVH
PVH
62.17
-2.54
-3.92%
RL
Ralph Lauren
341.62
119.30
53.66%
UA
Under Armour
5.94
-0.16
-2.62%
VFC
VF
16.38
0.50
3.16%

G-III Apparel Group Corporate Events

Business Operations and StrategyExecutive/Board Changes
G-III Apparel Group Approves New Stock Unit Awards
Positive
Dec 16, 2025

On December 11, 2025, G-III Apparel Group‘s Compensation Committee approved restricted stock unit awards under its 2023 Long-Term Incentive Plan to key senior leaders, including Jeffrey Goldfarb and Dana Perlman, as part of its succession planning efforts. These awards, valued at $5 million and $2 million respectively, are designed to enhance retention and reward extraordinary performance, aligning the interests of these leaders with the company’s stockholders and ensuring continued success in the competitive fashion market.

The most recent analyst rating on (GIII) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on G-III Apparel Group stock, see the GIII Stock Forecast page.

Business Operations and StrategyDividendsFinancial Disclosures
G-III Apparel Group Initiates First Dividend Program
Positive
Dec 9, 2025

On December 4, 2025, G-III Apparel Group‘s Board of Directors declared an initial quarterly cash dividend of $0.10 per share, marking the start of its first-ever dividend program. The company reported a strong third quarter for fiscal 2026, with net income per diluted share exceeding guidance, despite a 9% decrease in net sales compared to the previous year. The company raised its earnings guidance for fiscal 2026, reflecting its strategic priorities and strong brand portfolio, while also addressing challenges such as tariffs and consumer environment uncertainties. The new dividend program is part of G-III’s strategy to return capital to shareholders while continuing to pursue growth opportunities.

The most recent analyst rating on (GIII) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on G-III Apparel Group stock, see the GIII Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 19, 2025