G-III Apparel Group (GI4) AI Stock Analysis

Company Guidance

For fiscal 2027, G-III is reiterating net sales of approximately $2.71 billion, down approximately 8% compared to the prior year, and raising non-GAAP net income guidance to between $97 million and $101 million, or between $2.20 and $2.30 per diluted share, with full year adjusted EBITDA now expected to be between $174 million and $178 million; guidance excludes the financial impact of Marc Jacobs and reflects approximately $460 million of lost sales from Calvin Klein and Tommy Hilfiger products, partially offset by the go-forward portfolio, which is expected to grow high single digits. Third-quarter net sales are expected to be approximately $870 million, with non-GAAP net income between $59 million and $64 million or $1.34 (sic) [ $1.35 ] $1.45 per diluted share. The company continues to expect close to 400 basis points of gross margin improvement for the year, tariffs for the remainder of the year to approximate current rates, net interest income on a non-GAAP basis of approximately $5 million, a non-GAAP tax rate of approximately 32.2%, capital expenditures of approximately $40 million, and no additional share repurchases for the balance of fiscal 2027. Marc Jacobs is expected to generate approximately $360 million in global sales this year, excluding licensing revenues, with meaningful top line growth next year and long term potential to generate $1 billion in annual revenue for G-III; the acquisition is expected to be dilutive for the first 12 months of ownership, accretive thereafter, and to cause slight dilution for the remainder of fiscal 2027.