G-iii Apparel Q4 Earnings Beat Estimates, Gross Margin Rises Y/y

G-III Apparel Group, Ltd. GIII has reported impressive fourth-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, the company’s net sales and earnings increased year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Fiscal 2025 was an exceptional year, characterized by strong growth in revenues and profitability. The company executed its strategic priorities, launching four brands and driving significant expansion of its owned brands.

GIII remains confident in the strength of its brands and business model. The momentum of key owned brands — DKNY, Donna Karan, Karl Lagerfeld and Vilebrequin — is expected to drive double-digit sales growth, helping offset planned reductions in Calvin Klein and Tommy Hilfiger sales as the company transitions out of those licenses. G-III is undergoing a significant transformation, and has been committed to long-term growth and creating shareholder value.

More on GIII's Q4 Results

Adjusted earnings per share (EPS) of $1.27 surpassed the Zacks Consensus Estimate of 97 cents. Also, the bottom line increased 67.1% from the year-earlier quarter’s adjusted EPS 76 cents.

Net sales increased 9.8% year over year to $839.5 million and beat the consensus estimate of $810 million.

Insight Into G-III Apparel's Margins & Expenses

Gross profit increased 17.6% year over year to $331.6 million in the fiscal fourth quarter. We note that the gross margin expanded 260 basis points (bps) year over year to 39.5%. 

SG&A expenses improved 11% year over year to $244.9 million. As a percentage of net sales, this metric increased 30 bps year over year to 29.2%.

GIII’s Financial Snapshot: Cash, Debt & Equity Overview

G-III Apparel ended the fiscal fourth quarter with cash and cash equivalents of $181.4 million, and long-term debt of $6.16 million. Total stockholders’ equity was $1.68 billion. Inventory declined 8.1% year over year to $478.1 million at the end of the quarter.

GIII Stock Past Three-Month Performance

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G-III Apparel’s FY26 Guidance

For fiscal 2026, net sales are expected to be $3.14 billion compared with $3.18 billion in fiscal 2025. Net income is projected between $192 million and $197 million, with EPS of $4.15-$4.25. This compares with a net income of $193.6 million and an EPS of $4.20 registered in fiscal 2025.

Adjusted net income is expected between $192 million and $197 million, with EPS between $4.15 and $4.25. In fiscal 2025, adjusted net income was $203.6 million and adjusted EPS were $4.42. Adjusted EBITDA for fiscal 2026 is expected to be $310-$315 million, whereas it registered $325.9 million in fiscal 2025.

For the first quarter of fiscal 2026, net sales are expected to be $580 million, whereas it reported $609.7 million in the first quarter of fiscal 2025. Net income is projected to be $2-$7 million, with EPS between 5 cents and 15 cents. This compares with net income of $5.8 million and EPS of 12 cents registered in the first quarter of fiscal 2025.

Shares of this Zacks Rank #3 (Hold) company have lost 27.5% in the past three months compared with the industry’s 17.6% decline.

Key Picks

Some better-ranked stocks are Boot Barn Holdings, Inc. BOOT, Deckers Outdoor Corporation DECK and Urban Outfitters Inc. URBN.

Boot Barn is a specialty retailer of premium, high-quality casual apparel. It has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and revenues indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. Deckers delivered a trailing four-quarter average earnings surprise of 36.8%.

Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift items. It has a Zacks Rank of 2 at present. The company delivered a 16.9% earnings surprise in the last reported quarter. 

The consensus estimate for URBN’s fiscal 2025 earnings and revenues indicates growth of 11.8% and 6%, respectively, from the fiscal 2024 reported levels. URBN delivered a trailing four-quarter average earnings surprise of 28.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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