EarningsQ2 2027 Earnings Report
DE:GI4 Q2 2027 EPS Results
Actual EPS€0.23
Consensus EPS€0.21
Beat/MissBeat by +€0.02
One Year Ago EPS€0.22
DE:GI4 Q2 2027 Revenue Results
Actual Revenue€493.86M
Expected Revenue€508.37M
Beat/MissMissed by -€14.51M
YoY Revenue Growth-9.65%
Earnings Announcement Details
QuarterQ2 2027
Date09/02/2026
TimeBefore Open
Conference CallWednesday, September 2, 2026
DE:GI4 Upcoming Earnings
G-III Apparel Group's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:GI4 Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. G-III exceeded second-quarter earnings guidance, expanded gross margin substantially, maintained a strong balance sheet, delivered growth across several owned and licensed brands, raised full-year earnings guidance and completed the Marc Jacobs acquisition. These strengths outweighed the explicitly stated challenges of declining reported sales, the continued loss of Calvin Klein and Tommy Hilfiger revenue, European weakness, lower retail margin, tariff exposure and expected near-term Marc Jacobs dilution.Company Guidance
Second-Quarter Earnings Beat Guidance
Non-GAAP earnings per diluted share were $0.26, ahead of guidance of $0.15 to $0.25. Management attributed the outperformance to solid execution, significant gross margin expansion and disciplined expense management.
Gross Margin Expanded 440 Basis Points
Second-quarter gross margin increased to 45.2% from 40.8% last year, an expansion of approximately 440 basis points. The improvement reflected selective price increases, healthy full-price selling, a mix shift toward higher-margin owned brands and ongoing cost-savings initiatives.
Go-Forward Portfolio Continued to Grow
Excluding Tommy Hilfiger and Calvin Klein, the go-forward portfolio grew at a high single-digit rate in the quarter. Wholesale sales in full-price channels for the go-forward portfolio increased more than 20%.
Marc Jacobs Acquisition Completed
G-III completed the acquisition of Marc Jacobs, which management described as transformational and aligned with its strategy to become a brand-led global apparel powerhouse. G-III owns 100% of the Marc Jacobs operating company and has a 50% partnership in earnings generated by the brand's licensing business through its joint venture with WHP Global.
Marc Jacobs Provides Multiple Growth Opportunities
Marc Jacobs currently generates approximately 90% of revenue from handbags, small leather goods and accessories. G-III sees opportunities to expand ready-to-wear, licensing, fragrance, beauty, eyewear, children's apparel, wholesale distribution, international markets and direct-to-consumer channels. The business generates approximately two-thirds of revenue through direct-to-consumer and operates more than 100 company-operated stores.
Marc Jacobs Revenue Potential
Management expects the Marc Jacobs operating business to generate approximately $360 million in global sales this year, excluding licensing revenues from the intellectual property joint venture, and believes the brand can generate $1 billion in annual revenue for G-III over the long term.
Strong Balance Sheet and Liquidity
G-III ended the quarter with approximately $529 million to nearly $530 million in cash, compared with $302 million a year earlier, and approximately $1 billion in available liquidity. Cash benefited from approximately $134 million in tariff refunds, including interest. Management said the balance sheet remained healthy after closing Marc Jacobs and provided financial flexibility to invest in brands and strategic initiatives.
Inventory and Capital Returns
Inventory declined approximately 13% year over year, reflecting disciplined inventory management. G-III returned more than $12 million through share repurchases and its dividend during the second quarter.
Donna Karan Delivered Strong Growth
Donna Karan sales increased more than 45% in the second quarter, supported by solid consumer demand, healthy full-price selling and aspirational positioning. Digital performance grew across traffic, conversion and average unit retail values, while handbags delivered double-digit growth and the dress business was a standout.
DKNY Momentum Continued
DKNY.com sales grew in the mid-20% range year over year, driven by increased conversion and healthy average unit retail growth. DKNY stores delivered a solid mid-single-digit comparable sales increase, full-price sell-throughs remained healthy in North America, and retail partners allocated more space for Fall 2026 and Spring 2027.
Karl Lagerfeld Expanded Its Lifestyle Platform
Karl Lagerfeld delivered strong growth in North America, led by wholesale, while gross margins expanded in Europe through pricing, channel mix and sourcing execution. Karl Lagerfeld Jeans continued to outperform internationally. The company opened the first Karl Lagerfeld Café in Amsterdam, launched Karl Lagerfeld Residences in Lisbon, and had one hotel and one residential project open with five additional projects in development.
Vilebrequin Exceeded Margin Target
Vilebrequin delivered positive second-quarter growth across Europe, the Caribbean and Asia. Brand margin exceeded target, supported by higher average unit retail values and healthy consumer demand. The brand also launched a second limited-edition Fiat Topolino collaboration and opened the Vilebrequin La Plage Miami beach club.
Licensed Sports, Lifestyle and Contemporary Platforms Grew
The sports and lifestyle platform delivered healthy growth. Starter expanded through partnerships such as the limited-edition Pokémon jacket with Target, Converse continued to scale distribution, and Levi's was a quarterly highlight with meaningful expansion. The contemporary platform also gained momentum, with French Connection and BCBG performing well.
Raised Fiscal 2027 Earnings Guidance
G-III reiterated fiscal 2027 net sales guidance of approximately $2.71 billion and raised non-GAAP earnings per diluted share guidance to $2.20 to $2.30. Full-year non-GAAP net income is expected to be $97 million to $101 million, and adjusted EBITDA is expected to be $174 million to $178 million.
Expected Full-Year Margin Improvement
Management continued to expect close to 400 basis points of gross margin improvement for fiscal 2027, supported by first-half margin performance, price increases and the ongoing mix shift toward higher-margin owned brands. Full-year net interest income is expected to be approximately $5 million.
Strategic Investments and Cost Savings
G-III is continuing to invest in people, technology, marketing, Marc Jacobs product development, digital capabilities, stores and broader consumer experience. Management also plans to execute previously announced cost-saving initiatives and identify additional efficiencies.
DE:GI4 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed