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G-III Apparel Group
(NASDAQ:GIII)
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Rating:72Outperform
Price Target:
$31.00
▼(-6.88% Downside)
Action:Upgraded
Date:09/12/26
GIII’s score is supported primarily by strong financial strength (notably a very low-leverage balance sheet and solid free cash flow) and attractive valuation (low P/E). These positives are tempered by clearly bearish technicals (price below major moving averages with negative MACD and very low RSI/Stoch) and management’s guidance for declining sales due to license exits and near-term Marc Jacobs dilution, despite improved margin outlook and raised earnings guidance.
Positive Factors
Very low leverage
G-III’s exceptionally low leverage and sizable equity base provide meaningful financial flexibility. This structure can help the company fund brand investment, manage licensing transitions, and withstand weaker demand without depending heavily on borrowing or refinancing.
Negative Factors
License-driven revenue decline
The PVH license exits create a lasting revenue hole rather than a brief quarterly fluctuation. G-III must replace substantial volume through its go-forward brands, making the transition dependent on sustained portfolio growth and successful customer adoption.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
G-III’s exceptionally low leverage and sizable equity base provide meaningful financial flexibility. This structure can help the company fund brand investment, manage licensing transitions, and withstand weaker demand without depending heavily on borrowing or refinancing.
Read all positive factors
G-III Apparel Group (GIII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.22B
Dividend Yield1.41%
Average Volume (3M)704.92K
Price to Earnings (P/E)8.9
Beta (1Y)0.70
Revenue Growth-8.74%
EPS Growth-22.98%
CountryUS
Employees3,950
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)3.21
Shares Outstanding42,876,507
10 Day Avg. Volume524,013
30 Day Avg. Volume704,920
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.71
Price to Sales (P/S)0.42
P/FCF Ratio4.75
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.14
Enterprise Value/Ebitda6.63
Forecast
1Y Price Target
$33.00Price Target Upside-0.87% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.25
Revenue Forecast (FY)$2.71B
G-III Apparel Group Business Overview & Revenue Model
Company Description
G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States and internationally. It operates through two segments, Wholesale Operations and Retail Operations. The company offers outerwear, dresses, sports...
How the Company Makes Money
G-III Apparel Group primarily makes money by selling apparel and accessories through two main channels: (1) wholesale sales to department stores, specialty retailers, and other retail partners, and (2) direct-to-consumer sales through company-oper...
G-III Apparel Group Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
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.Positive Updates
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.
Negative Updates
Second-Quarter Sales Declined and Missed Plan Slightly
Second-quarter net sales were reported at approximately $554 million to $555 million, down 10% from $613 million last year and slightly below plan. The decline was primarily driven by the anticipated reductions in Calvin Klein and Tommy Hilfiger sales, with European weakness also affecting results.
Read all updates
Q2-2027 Updates
Positive
Negative
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.
Read all positive updates
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.G-III Apparel Group Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
90
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.85B | 2.96B | 3.18B | 3.10B | 3.23B | 2.77B |
| Gross Profit | 1.25B | 1.14B | 1.27B | 1.21B | 1.07B | 960.56M |
| EBITDA | 215.02M | 140.19M | 316.14M | 307.72M | -53.81M | 348.27M |
| Net Income | 135.40M | 67.35M | 193.57M | 176.17M | -133.06M | 200.59M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.61B | 2.48B | 2.68B | 2.71B | 2.74B |
| Cash, Cash Equivalents and Short-Term Investments | 529.19M | 406.66M | 181.44M | 507.83M | 191.65M | 465.98M |
| Total Debt | 340.84M | 284.70M | 277.68M | 652.67M | 446.33M | 232.63M |
| Total Liabilities | 932.73M | 850.50M | 803.75M | 1.13B | 1.33B | 1.22B |
| Stockholders Equity | 1.82B | 1.76B | 1.68B | 1.55B | 1.39B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | 274.59M | 263.92M | 273.11M | 562.90M | -126.21M | 154.29M |
| Operating Cash Flow | 309.00M | 299.14M | 316.40M | 587.58M | -104.60M | 185.80M |
| Investing Cash Flow | -34.40M | -36.00M | -148.15M | -28.33M | -217.96M | -51.51M |
| Financing Cash Flow | -49.40M | -54.29M | -485.51M | -244.63M | 51.63M | -23.44M |
G-III Apparel Group Technical Analysis
Negative
33.29
Price Trends
29.29
Negative
31.90
Negative
30.68
Negative
Market Momentum
-0.17
Negative
54.52
Neutral
82.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIII, the sentiment is Negative. The current price of 33.29 is above the 20-day moving average (MA) of 27.47, above the 50-day MA of 29.29, and above the 200-day MA of 30.68, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIII.
G-III Apparel Group Risk Analysis
G-III Apparel Group disclosed 30 risk factors in its most recent earnings report. G-III Apparel Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
G-III Apparel Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.66B | 23.66 | 35.64% | 1.00% | 14.68% | 26.22% | |
72 Outperform | $1.22B | 8.86 | 7.53% | 1.41% | -8.74% | -22.98% | |
68 Neutral | $152.23M | 19.93 | 14.48% | ― | 8.02% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $403.22M | -55.43 | -1.28% | 10.71% | -1.80% | -112.70% | |
53 Neutral | $3.99B | -23.47 | -3.49% | 0.18% | 1.64% | -140.84% | |
51 Neutral | $6.74B | 24.50 | 15.95% | 2.10% | -0.16% | 212.77% |
* Consumer Cyclical Sector Average
GIII
G-III Apparel Group
29.78
1.72
6.13%
OXM
Oxford Industries
28.35
-9.24
-24.58%
PVH
PVH
84.26
-2.23
-2.58%
RL
Ralph Lauren
381.95
49.19
14.78%
VFC
VF
17.48
1.94
12.51%
VNCE
Vince Holding
12.17
9.22
312.54%
G-III Apparel Group Corporate Events
Business Operations and StrategyFinancial Disclosures
G-III Apparel boosts earnings amid strategic brand shift
Positive
Sep 2, 2026
G-III Apparel Group reported second-quarter fiscal 2027 results on September 2, 2026, with net income per diluted share rising to $0.46 from $0.25 a year earlier, despite a 10% drop in net sales to $554.1 million. Gross margin expanded by 440 basi...
Business Operations and StrategyDividends
G-III Apparel Declares Quarterly Cash Dividend to Shareholders
Positive
Aug 20, 2026
On August 18, 2026, G-III Apparel Group’s board declared a quarterly cash dividend of $0.10 per share on its common stock, marking a return of capital to shareholders that underscores the company’s confidence in its financial position....
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
G-III Stockholders Approve Directors and Incentive Plan
Positive
Jun 12, 2026
On June 11, 2026, G-III Apparel Group, Ltd. held its Annual Meeting of Stockholders, where shareholders elected eleven directors to serve until the next annual meeting, reflecting continued support for the current board. Stockholders also approved...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.