G-III Apparel Group, Ltd.

First-quarter fiscal 2027 net sales were $536 million, down from $584 million a year ago, and ahead of the roughly $530 million guidance. Wholesale sales were $515 million versus $563 million, and retail sales were $41 million versus $36 million. Non-GAAP loss per share was $0.21 versus non-GAAP EPS of $0.19 last year; non-GAAP gross margin was 45.7%, up 350 basis points year over year, while GAAP gross margin was 64.9% versus 42.2% due to the tariff recovery accounting. Full-year fiscal 2027 guidance was reiterated for net sales of approximately $2.71 billion, non-GAAP EPS of $2.15-$2.25, and adjusted EBITDA of $178 million-$182 million. For Q2, the company expects sales of about $570 million and non-GAAP EPS of $0.15-$0.25, with gross margin expansion of about 450 basis points. Management also said it expects about 400 basis points of gross margin improvement for the full year, capex of about $40 million, net interest income of about $2 million, and a non-GAAP tax rate of about 33.5%.

Morris Goldfarb said the quarter showed the company’s strategy is working: the go-forward portfolio is growing, full-price selling is improving, and the business is shifting toward higher-quality owned brands. He emphasized that DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, and soon Marc Jacobs all have meaningful runway, and repeatedly described these brands as still early in their development. His tone was confident and expansive, with Marc Jacobs positioned as a major milestone that should accelerate G-III’s transition into a more balanced global fashion house.

Neal Nackman focused on the numbers behind the beat and the updated outlook. He detailed the tariff accounting benefit, including a $140 million receivable for IEEPA tariffs, about $120 million reduced from cost of goods sold, and a roughly $20 million inventory reduction, then noted adjusted gross margin of 45.7% and non-GAAP SG&A of $252 million versus $231 million last year. He said cash ended at $394 million, up from $258 million, with over $800 million of available liquidity and inventories down 8%, while also raising the full-year EPS and EBITDA outlook and calling for about $25 million of run-rate savings in fiscal 2028 from cost initiatives.

Analysts asked where the biggest growth opportunities remain across the owned brands and how large they can become. Goldfarb said the brands are early in their life cycles, with room for category expansion, international growth, and more retail/DTC penetration; he suggested Donna Karan could ultimately be about 3x its current size and said Marc Jacobs has broad millennial, Gen Z, and luxury appeal. Another question focused on wholesale demand and whether buyers are becoming more cautious; Goldfarb said consumers appear to still be shopping, though more selectively, with Europe softer than North America. On margins, management said the portfolio mix shift toward owned brands is helping, and Nackman noted owned businesses tend to run in the mid-teens to upper teens operating margin range, while the Marc Jacobs structure is a hybrid with royalty economics.