On September 2, American fashion group G-III Apparel Group, the parent company of well-known fashion brands DKNY, Karl Lagerfeld and upscale swimwear and beachwear brand Vilebrequin, reported financial results for the second quarter of fiscal 2027 ended July 31: net sales fell 10% year on year to $554 million, while net income came in at $20.21 million (compared with $10.9 million in the prior-year period).
Morris Goldfarb, Chairman and Chief Executive Officer of G-III, said: "Our second-quarter results reflect strong execution across the company, with significant gross margin expansion driving earnings above our guidance. Our continuing business portfolio delivered high-single-digit growth this quarter, further validating our confidence in the strength of our brands and our business model."
G-III currently owns 10 proprietary brands, including DKNY Donna Karan, Karl Lagerfeld and Vilebrequin, and holds licenses for more than 20 fashion brands, including Levi's, Halston, Champion, Converse, Cole Haan, BCBG, Calvin Klein and Tommy Hilfiger. Among these, the licenses for Calvin Klein and Tommy Hilfiger are scheduled to expire progressively over the 2025 to 2027 calendar years. G-III also produces outerwear and sportswear through licensing partnerships with major U.S. professional sports leagues.
During the reporting period, G-III and U.S. brand management company WHP Global jointly acquired American designer brand Marc Jacobs from French luxury giant LVMH for approximately $925 million. (See LuxeCO's previous coverage here)
Morris Goldfarb said: "Completing the Marc Jacobs acquisition is an important step in our strategic transformation. This acquisition significantly strengthens our brand portfolio and further solidifies our position as a global fashion leader. I am extremely optimistic about G-III's future: we have outstanding brands, business capabilities and financial flexibility to fully capture future opportunities and create long-term value for shareholders."
Key financial data for G-III's second quarter of fiscal 2027, ended July 31, 2026:
- Net sales fell 10% year on year to $554.1 million;
- Gross margin rose 440 basis points year on year to 45.2%, compared with 40.8% in the prior-year period;
- Net income was $20.21 million, compared with $10.9 million in the prior-year period;
- Diluted earnings per share were $0.46, compared with $0.25 in the prior-year period.
Key financial data for G-III's first half of fiscal 2027, ended July 31, 2026:
- Net sales were $1.09 billion, compared with $1.197 billion in the prior-year period;
- Gross margin was 54.9%, including the impact of a one-time large tariff refund; it was 41.5% in the prior-year period;
- Net income was $86.75 million, compared with $18.7 million in the prior-year period;
- Diluted earnings per share were $1.95, compared with $0.42 in the prior-year period.
Full-year fiscal 2027 outlook (excluding any financial impact from the Marc Jacobs acquisition):
- Net sales are expected to be approximately $2.71 billion, reflecting the loss of approximately $460 million in business from exiting the Calvin Klein and Tommy Hilfiger license businesses;
- Net income is expected to be in the range of $181 million to $185 million;
- Diluted earnings per share are expected to be in the range of $4.1 to $4.2.
Third-quarter fiscal 2027 outlook:
- Net sales are expected to be approximately $870 million;
- Net income is expected to be in the range of $59 million to $64 million;
- Diluted earnings per share are expected to be in the range of $1.35 to $1.45.
| Source: Official financial report
| Image credit: Company website
| Editor: LuxeCO
