G-III Apparel Group, Ltd.

Second-quarter fiscal 2027 net sales were $555 million, down from $613 million a year ago, or down 10% year over year. Gross margin was 45.2% versus 40.8% last year, up about 440 basis points, driven by higher-margin owned brands and selective price increases. Non-GAAP net income was $11.5 million, or $0.26 per diluted share, versus $11.2 million, or $0.25 per diluted share, last year; GAAP net income was $20.2 million, or $0.46 per diluted share, versus $10.9 million, or $0.25 per diluted share. For fiscal 2027, G-III reiterated net sales of approximately $2.71 billion, raised non-GAAP EPS guidance to $2.20-$2.30, and lifted adjusted EBITDA guidance to $174 million-$178 million. For Q3, the company expects net sales of approximately $870 million and non-GAAP EPS of $1.35-$1.45 per share. Management said fiscal 2027 guidance excludes Marc Jacobs, which it expects to contribute approximately $360 million of global sales this year (excluding JV licensing revenue), and said it expects slight dilution for the remainder of fiscal 2027.

Morris Goldfarb framed the quarter as solid execution in a tough backdrop, emphasizing earnings ahead of guidance, strong margin expansion, and disciplined inventory and expense management. He positioned Marc Jacobs as a transformational addition that broadens G-III’s owned-brand portfolio and supports a longer-term shift to a higher-growth, higher-margin business. His tone was confident and strategic, while acknowledging Europe remains challenged and the consumer is selective.

Neal Nackman focused on the numbers: Q2 net sales of $555 million, gross margin of 45.2%, SG&A of $231 million, and non-GAAP EPS of $0.26. He highlighted $529 million in cash, about $1 billion in available liquidity, inventories down 13%, and $134 million in tariff refunds, including interest, that supported the cash balance. On guidance, he said FY27 sales remain about $2.71 billion, non-GAAP EPS is now $2.20-$2.30, adjusted EBITDA is $174 million-$178 million, gross margin should improve close to 400 basis points for the year, capex should be about $40 million, and no additional share repurchases are assumed for the rest of FY27.

Analysts focused on the sales shortfall, the outlook for wholesale, Europe weakness, gross margin durability, tariff assumptions, and the 3Q/4Q cadence. Management said the Q2 miss was largely timing-related and not viewed as a structural issue, noted the wholesale order book is about 90% complete and comparable to last year, and said Europe was hurt by dramatic traffic declines, warm weather, and promotional pressure. On margins, Neal said tariffs had been absorbed and product pricing plus the shift toward higher-margin owned brands are driving the strong gross margin, while he confirmed the model now assumes current tariff rates. Questions on Marc Jacobs centered on near-term opportunities and synergies; Morris said G-III sees significant room to expand the brand beyond handbags into other categories, leverage its talent and systems, and unlock licensing opportunities through WHP.