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what it is
G-III makes and sells apparel, shoes, and accessories under owned and licensed brands sold through big retailers.
how it gets paid
Last year G-Iii Apparel made $3.2B in revenue. Outerwear was the main engine at $1.02B, or 32% of sales.
why it's growing
Revenue grew 2.7% last year. Revenue rose 121% vs. prior year in the latest quarter.
what just happened
Revenue hit $2.2B and EPS reached $2.23, but the bigger story is that margins still look fragile.
At a glance
B+ balance sheet — decent shape, but not bulletproof
5/100 earnings predictability — expect surprises
10.6x trailing p/e — the market's not buying it — or you found a deal
7.0% return on capital — nothing to write home about
xvary composite: 68/100 — average
What they do
G-III makes and sells apparel, shoes, and accessories under owned and licensed brands sold through big retailers.
If your store misses jacket season, that inventory turns into a clearance rack fast. G-III wins by getting product onto shelves on time across 30+ brands sold through major retailers nationwide. Long-term debt is just $6 million, or 1% of capital, so you are not betting on a balance-sheet rescue.
How they make money
$3.2B
annual revenue · their business grew +2.7% last year
Outerwear
$1.02B
4.0%
Dresses
$0.70B
+2.0%
Sportswear
$0.58B
+3.0%
Swimwear
$0.26B
+5.0%
Footwear & accessories
$0.64B
+4.0%
The products that matter
owned brand rebuild
DKNY
$600M+ gap to fill
dkny sits inside the owned-brand push that has to replace more than $600M of lost licensed revenue inside a $3B business.
owned brand
rolling-off licensed revenue
Calvin Klein & Tommy Hilfiger
$600M+ exiting
these licenses brought in over $600M a year. losing them cleans up the portfolio, but it also removes roughly one-fifth of annual revenue.
revenue cliff
new seven-year footwear license
G.H. Bass
launching in 2026
the seven-year ALDO deal is small next to a $600M hole, but you need proof the replacement pipeline is real.
proof point
Key numbers
$2.75
fy2026 eps est
$3B
fy2026 rev est
10.6x
trailing p/e
40.2%
gross margin
Gross profit kept about 40.2% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $6M (1% of capital)
- net profit margin 4.3% — keeps 4 cents of every dollar in revenue
- return on equity 7% — $0.07 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in GIII 3 years ago → it's now worth $20,780.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $2.2B and EPS reached $2.23, but the bigger story is that margins still look fragile.
Revenue rose 121% vs. prior year in the latest quarter, and gross margin was 40.2%. Management is still working through a shift away from lower-margin licensed business, which is why profit quality matters more than one quarter's beat.
$2.2B
revenue
$2.23
eps
40.2%
gross margin
the number that mattered
Gross margin at 40.2% matters because this transition only works if owned brands replace lost licensed revenue with better economics.
-
net sales declined to $989 million and net income fell vs. prior year as large calvin klein and tommy hilfiger licenses continued to roll off, simultaneously as tariff costs surged.on the surface it appears as deteriorating profitability, but in reality, the company is absorbing multiple short-term shocks at once, from revenue loss, tariff inflation, and brand transition costs. it's noteworthy that adjusted earnings per share exceeded both guidance and our own estimates, and the gross margin landed above expectations.
-
the present decline is a result of the timing of g-iii's strategic repositioning, along with other market forces, rather than an unintentional breakdown in the business model.
-
a near-term margin contraction should pave the way for an eventual profit expansion.the apparent contradiction, as margins contract while management emphasizes its higher-margin owned brands, is explained by how the process is unfolding.
-
the exit of lower-margined licensed businesses happens quickly, while replacement volume from owned brands scales gradually.at the same time, tariffs have imposed a large, immediate cost increase that has not yet been priced into the existing retail prices.
-
management chose to absorb much of that cost to protect retail relationships and shelf space.the deliberate tradeoff is for near-term margin pressure, in exchange for a cleaner portfolio and pricing control in the future.
source: company earnings report, 2026
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What could go wrong
the top risk is replacing more than $600M of rolling-off Calvin Klein and Tommy Hilfiger revenue without turning a transition year into a permanent shrink story.
high
licensed revenue cliff
More than $600M of annual sales tied to Calvin Klein and Tommy Hilfiger is rolling off. That is not a rounding error inside a $3B revenue base.
impact: roughly one-fifth of annual revenue has to be replaced
high
tariff absorption
The company faces a potential $135M hit in fiscal 2026 from tariffs on Chinese imports. If g-iii cannot pass that through, margin pressure gets worse fast.
impact: a $135M hit would consume about one-third of the $407M cash cushion
med
retailer credit risk
The latest quarter included a $17.5M bad-debt charge tied to the Saks bankruptcy. Wholesale relationships drive volume, but they also import your customers' solvency risk into your own results.
impact: bad debt hits profit directly and adds more noise to already weak margins
med
shareholder law firm investigation
A shareholder law firm said it is investigating executive officers over possible federal securities law claims. That does not equal liability, but it does add legal overhang and management distraction.
impact: added legal cost, headline risk, and time spent away from the operating reset
Put the numbers together: a $600M+ revenue gap, a potential $135M tariff hit, and a $17.5M credit charge are all competing for the same $407M cash cushion.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
owned-brand replacement pace
More than $600M of licensed revenue is leaving. You need the owned-brand portfolio to start filling that gap fast enough that revenue stops shrinking.
calendar
q1 fy2027 results
Management is guiding to $2.80–$2.90 in FY2027 EPS. The next print is the first real check on whether that target still looks credible.
risk
tariff pass-through
A potential $135M tariff hit is too large to hide. Watch gross margin and pricing commentary to see whether g-iii is eating the cost or pushing it through.
trend
institutional selling streak
Institutions have been net sellers for 3 straight quarters. If that flips while revenue stabilizes, the market is telling you the reset is gaining credibility.
Analyst rankings
earnings predictability
5 / 100
in human-speak, analysts do not trust this company to print clean, repeatable numbers right now.
risk rank
3
That puts GIII around the middle of the pack on safety. Low debt helps. The business transition keeps it from feeling safe.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 110 buyers vs. 119 sellers in 3q2025. total institutional holdings: 40.5M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$15
$37
$29
current price
$26
target midpoint · 11% from current · 3-5yr high: $45 (+55% · 12% ann'l return)
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