G-III Apparel Group (GIII)
NASDAQ:GIII
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G-III Apparel Group
(NASDAQ:GIII)
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Rating:73Outperform
Price Target:
$40.00
▲(31.19% Upside)
Action:Reiterated
Date:06/13/26
Overall score is driven by a very strong balance sheet and positive cash generation, reinforced by raised full-year profitability guidance and solid price momentum. The main offsets are weakening revenue trends, declining free-cash-flow momentum, and near-term dilution/execution risk tied to the Marc Jacobs deal.
Positive Factors
Very strong balance sheet
G-III's near-zero leverage and sizable equity give durable financial flexibility. This supports continued dividend payments, funding of strategic deals, and resilience through retail cycles without forcing asset sales or emergency financing, preserving long-term operational optionality.
Negative Factors
Top-line headwinds from lost licenses
The planned loss of large PVH license revenues materially reduces scale and recurring wholesale volume. Replacing ~$470M requires sustained owned-brand growth; failure to do so could compress buying power, supplier terms and long-term revenue stability across wholesale channels.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
G-III's near-zero leverage and sizable equity give durable financial flexibility. This supports continued dividend payments, funding of strategic deals, and resilience through retail cycles without forcing asset sales or emergency financing, preserving long-term operational optionality.
Read all positive factors
G-III Apparel Group (GIII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend YieldN/A
Average Volume (3M)486.59K
Price to Earnings (P/E)11.6
Beta (1Y)0.52
Revenue Growth-7.78%
EPS Growth-32.92%
CountryUS
Employees3,500
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)2.99
Shares Outstanding42,190,575
10 Day Avg. Volume774,199
30 Day Avg. Volume486,586
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.71
Price to Sales (P/S)0.42
P/FCF Ratio4.75
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda6.19
Forecast
1Y Price Target
$39.33Price Target Upside29.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.09
Revenue Forecast (FY)$2.71B
G-III Apparel Group Business Overview & Revenue Model
Company Description
G-III Apparel Group, Ltd. operates as a global fashion enterprise, specializing in the design, procurement, and commercialization of clothing lines for both women and men across the United States and internationally. The company's business model i...
How the Company Makes Money
G-III primarily makes money by selling branded apparel and accessories through two main channels: (1) Wholesale—G-III designs and sources products and sells them in bulk to retail partners (e.g., department stores and specialty/digital retailers)....
G-III Apparel Group Earnings Call Summary
Earnings Call Date:Jun 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call conveyed substantial positive operational momentum: meaningful margin expansion (adjusted +350 bps), stronger DTC and owned-brand performance (Donna Karan ~+40%, DTC near +40%), improved cash and liquidity, and an upgraded profitability outlook (non-GAAP EPS and EBITDA raised). Offsetting these positives are persistent top-line pressure (Q1 sales down 8% and FY sales guidance down ~8%) driven by the planned loss of large license revenues, a Q1 non-GAAP net loss, higher SG&A as investments scale, regional softness in Europe, and the near-term dilutive nature and funding needs of the Marc Jacobs acquisition. On balance, the positives (margin recovery, brand/DTC momentum, liquidity, and raised profit guidance) outweigh the lowlights, though key risks remain around revenue recovery and integration of the acquisition.Positive Updates
Adjusted Gross Margin Expansion
Adjusted (non-GAAP) gross margin of 45.7% in Q1, up 350 basis points YoY versus 42.2%; GAAP gross margin was 64.9% (inflated by tariff recovery). Company recorded a $140M IEEPA tariff receivable and reduced COGS by ~ $120M (of which $103M related to prior-year tariffs).
Negative Updates
Year-over-Year Revenue Decline
Net sales declined 8% YoY in Q1 to $536M and full-year net sales guidance of ~$2.71B also reflects an ~8% decline, driven primarily by the planned loss of PVH (Calvin Klein and Tommy Hilfiger) license revenues (~$470M of lost sales).
Read all updates
Q1-2027 Updates
Positive
Negative
Adjusted Gross Margin Expansion
Adjusted (non-GAAP) gross margin of 45.7% in Q1, up 350 basis points YoY versus 42.2%; GAAP gross margin was 64.9% (inflated by tariff recovery). Company recorded a $140M IEEPA tariff receivable and reduced COGS by ~ $120M (of which $103M related to prior-year tariffs).
Read all positive updates
Company Guidance
The company reiterated full-year net sales guidance of approximately $2.71 billion (down ~8% year-over-year, reflecting about $470 million of lost Calvin Klein/Tommy Hilfiger sales) while expecting the go‑forward portfolio to grow in the high single digits; it raised full‑year non‑GAAP net income to $95–$99 million (or $2.15–$2.25 per diluted share, up from $2.00–$2.10) and raised adjusted EBITDA to $178–$182 million (from $158–$162 million). For Q2 the company expects net sales of roughly $570 million (vs. $613 million prior year) and non‑GAAP net income of $7–$11 million ($0.15–$0.25 per share, vs. $11 million/$0.25 prior year), and it now models ~400 basis points of gross margin expansion for the year (Q2 ~450 bps); Q1 adjusted gross margin was 45.7% (up 350 bps) and GAAP gross margin was 64.9% reflecting a $140 million IEEPA tariff receivable and about $120 million COGS benefit (including $103 million of prior‑year tariffs and a ~$20 million inventory carrying value reduction). The company finished Q1 with $394 million of cash, over $800 million of available liquidity, inventories down 8%, expects capex of ~$40 million, net interest income of ~ $2 million, a non‑GAAP tax rate of ~33.5%, and reiterated $25 million of identified run‑rate cost savings for fiscal 2028; guidance excludes the pending ~ $500 million Marc Jacobs transaction (to be funded with cash and revolver), which the company says will be dilutive in year one but accretive thereafter with a long‑term ~$1 billion revenue opportunity.G-III Apparel Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.91B | 2.96B | 3.18B | 3.10B | 3.23B | 2.77B |
| Gross Profit | 1.24B | 1.14B | 1.27B | 1.21B | 1.07B | 960.56M |
| EBITDA | 215.96M | 140.19M | 316.14M | 307.72M | 686.00K | 391.62M |
| Net Income | 126.13M | 67.35M | 193.57M | 176.17M | -133.06M | 200.59M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 2.61B | 2.48B | 2.68B | 2.71B | 2.74B |
| Cash, Cash Equivalents and Short-Term Investments | 394.22M | 406.66M | 181.44M | 507.83M | 191.65M | 465.98M |
| Total Debt | 293.56M | 284.70M | 277.68M | 652.67M | 446.33M | 232.63M |
| Total Liabilities | 760.86M | 850.50M | 803.75M | 1.13B | 1.33B | 1.22B |
| Stockholders Equity | 1.82B | 1.76B | 1.68B | 1.55B | 1.39B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | 167.79M | 263.92M | 273.11M | 562.90M | -126.21M | 154.29M |
| Operating Cash Flow | 203.38M | 299.14M | 316.40M | 587.58M | -104.60M | 185.80M |
| Investing Cash Flow | -35.63M | -36.00M | -148.15M | -28.33M | -217.96M | -51.51M |
| Financing Cash Flow | -41.90M | -54.29M | -485.51M | -244.63M | 51.63M | -23.44M |
G-III Apparel Group Technical Analysis
Positive
30.49
Price Trends
31.58
Positive
30.27
Positive
29.25
Positive
Market Momentum
1.10
Negative
60.76
Neutral
47.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Positive. The current price of 30.49 is below the 20-day moving average (MA) of 33.28, below the 50-day MA of 31.58, and above the 200-day MA of 29.25, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.47B | 11.63 | 7.12% | ― | -7.78% | -32.92% | |
73 Outperform | $24.59B | 26.77 | 34.77% | 0.93% | 14.63% | 29.96% | |
70 Outperform | $3.40B | 20.66 | 10.26% | 2.18% | 0.54% | -19.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $3.55B | 22.38 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $6.80B | 26.61 | 15.92% | 1.95% | -0.72% | ― | |
43 Neutral | $2.54B | -5.05 | -30.13% | ― | -3.39% | -152.87% |
* Consumer Cyclical Sector Average
GIII
G-III Apparel Group
34.77
13.47
63.23%
COLM
Columbia Sportswear
66.46
7.69
13.08%
PVH
PVH
77.07
12.34
19.06%
RL
Ralph Lauren
413.01
148.30
56.02%
UA
Under Armour
5.87
-0.72
-10.93%
VFC
VF
17.33
5.82
50.56%
G-III Apparel Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
G-III Stockholders Approve Directors and Incentive Plan
Positive
Jun 12, 2026
On June 11, 2026, G-III Apparel Group, Ltd. held its Annual Meeting of Stockholders, where shareholders elected eleven directors to serve until the next annual meeting, reflecting continued support for the current board. Stockholders also approved...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
G-III Raises Earnings Outlook Despite Lower Sales Guidance
Positive
Jun 5, 2026
On June 5, 2026, G-III Apparel Group reported first-quarter fiscal 2027 results for the period ended April 30, 2026, with net sales down 8% year on year to $536 million but beating guidance, and gross margin sharply higher at 64.9% largely due to ...
Business Operations and StrategyDividends
G-III Apparel Declares Quarterly Cash Dividend to Shareholders
Positive
May 27, 2026
On May 26, 2026, G-III Apparel Group’s board declared a quarterly cash dividend of $0.10 per share on its common stock. The dividend is scheduled to be paid on July 8, 2026 to shareholders of record as of June 22, 2026.The move underscores t...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
G-III Forms Marc Jacobs IP Joint Venture With WHP
Positive
May 14, 2026
On May 14, 2026, G-III Apparel Group announced a definitive agreement with WHP Global to form a 50/50 joint venture that will own the Marc Jacobs brand’s intellectual property. G-III will acquire and run the global Marc Jacobs operating busi...
Executive/Board ChangesRegulatory Filings and Compliance
G-III Apparel Approves Performance-Based Executive PSU Awards
Neutral
May 4, 2026
On May 4, 2026, G-III Apparel Group, Ltd. filed a report indicating it had approved performance share unit (PSU) awards for its named executive officers, including Chief Executive Officer Morris Goldfarb and Chief Financial Officer Neal S. Nackman...
Dividends
G-III Apparel Declares Quarterly Cash Dividend to Shareholders
Positive
Mar 13, 2026
On March 12, 2026, G-III Apparel Group, Ltd., a global fashion company with a portfolio of more than 30 owned and licensed brands, announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share on its common stock. The...
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.