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1. Company Snapshot

1.a. Company Description

G-III Apparel Group, Ltd.designs, sources, and markets women's and men's apparel in the United States and internationally.The company operates through two segments, Wholesale Operations and Retail Operations.


Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage.The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Sonia Rykiel, Black Rivet, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, and Dockers.It has licenses with the National Football League, Major League Baseball, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities.


The company offers its products to department, specialty, and mass merchant retail stores.As of January 31, 2022, it operated 96 Vilebrequin retail stores; 60 DKNY and Karl Lagerfeld Paris stores; and 26 DKNY stores.The company also sells its products online.


G-III Apparel Group, Ltd.was founded in 1956 and is headquartered in New York, New York.

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1.b. Last Insights on GIII

The recent 3 months performance of G-III Apparel Group, Ltd. was negatively impacted by rising costs and soft 2026 guidance, which pressured profit expectations. The company's low P/E ratio signals value amid global growth and digital investment, but this is tempered by the challenges posed by rising costs. Additionally, the company's warning of tariff impact on profit and withdrawal of full-year outlook has contributed to the negative sentiment.

1.c. Company Highlights

2. G-III Apparel Group's Q2 Earnings Exceed Expectations

G-III Apparel Group reported Q2 net sales of $613 million and GAAP earnings per diluted share of $0.25, both exceeding guidance. Gross margins faced pressure from higher-than-expected tariff costs, mitigated through vendor collaboration, sourcing shifts, and selective price increases. The company's net income was $11 million, down from $24 million in the prior year, primarily due to the exit from Calvin Klein jeans and Sportswear licenses.

Publication Date: Sep -13

📋 Highlights
  • Q2 Financial Results:: Net sales $613M, GAAP EPS $0.25, above guidance, with owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin) driving growth.
  • Margin Impact:: Gross margin pressured by $155M in higher-than-expected tariffs; 300 bps decline to 40.8%, partially offset by vendor collaboration and price increases.
  • Inventory & Cash:: Inventory up 5% to $497M due to tariff-driven receipt acceleration; ended with $286M net cash after $25M share repurchases.
  • Brand Strategies:: Donna Karan expanded into casual wear, Karl Lagerfeld grew 30% in North America, DKNY doubled outerwear sales; new licenses (Converse, BCBG) added growth avenues.
  • 2026 Outlook:: Expects PVH license exits to reduce revenue to ~$400M by 2027, but higher-margin owned brands and international expansion expected to offset losses.

Financial Performance and Guidance

The company's wholesale segment sales declined to $590 million, while the retail segment sales rose to $41 million amid store footprint reductions. For 2026, G-III projects net sales of $3.02 billion and non-GAAP EPS of $2.55–$2.75, reflecting a 5% sales decline from PVH brand exits and tariff impacts. The company's current P/E Ratio is 6.23, indicating that the stock is trading at a relatively low multiple of earnings, while the ROE is 10.85%, suggesting a decent return on equity.

Strategic Initiatives and Brand Performance

Owned brands (DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin) drove growth, with Donna Karan leveraging luxury positioning and expanding into casual wear. The company is investing in technology, including 3D design and AI, and is consolidating its warehouse operations. New licenses, such as Converse and BCBG, are expected to contribute to growth, while the transition out of PVH licenses is expected to reduce revenue but create market opportunities.

Valuation and Outlook

With a P/S Ratio of 0.37 and an EV/EBITDA of 2.98, the company's valuation appears reasonable. The company's net cash position is $286 million, and it has $830 million in liquidity. As G-III continues to navigate the challenges of tariffs and licensing transitions, its strategic priorities include cost optimization, technology investments, and leveraging higher-margin owned brands to drive long-term growth.

3. NewsRoom

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G-III Apparel Group Announces Date for Third Quarter Fiscal 2026 Results

Dec -02

Source: globenewswire.com

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Envestnet Asset Management Inc. Buys 4,544 Shares of G-III Apparel Group, LTD. $GIII

Nov -27

Source: defenseworld.net

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ReGen III Announces Receipt of $3.975 Million in Sub-Agreements Related to Convertible Debenture Exchange

Nov -17

Source: newsfilecorp.com

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VIRGINIA RETIREMENT SYSTEMS ET Al Buys New Shares in G-III Apparel Group, LTD. $GIII

Oct -26

Source: defenseworld.net

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G-III Apparel Group, LTD. (NASDAQ:GIII) Receives Consensus Rating of “Hold” from Brokerages

Oct -23

Source: defenseworld.net

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ReGen III Provides Management Update

Oct -22

Source: newsfilecorp.com

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G-III Apparel: New Brands, Internationalization, And Undervalued

Oct -08

Source: seekingalpha.com

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G-III Apparel Analysts Increase Their Forecasts After Better-Than-Expected Q2 Results

Sep -05

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.42%)

6. Segments

Wholesale

Expected Growth: 5.45%

G-III Apparel Group's wholesale segment growth of 5.45% is driven by increasing demand for licensed products, expansion of existing brand portfolios, and strategic partnerships. Additionally, the company's focus on digital marketing and e-commerce initiatives has contributed to the growth. Furthermore, the acquisition of new brands and licenses has also boosted wholesale revenue.

Retail

Expected Growth: 4.77%

G-III Apparel Group's Retail segment growth of 4.77% is driven by increasing demand for licensed products, successful brand acquisitions, and strategic expansion of e-commerce platforms. Additionally, the company's focus on omnichannel retailing, effective inventory management, and competitive pricing strategies have contributed to the segment's growth.

Elimination

Expected Growth: 5.4%

G-III Apparel Group's 5.4% growth is driven by strong brand portfolio, including licensed brands like Calvin Klein and Tommy Hilfiger, and its diversified distribution channels. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic acquisitions have contributed to its growth momentum.

7. Detailed Products

Licensed Products

G-III Apparel Group, Ltd. designs, manufactures, and distributes licensed products, including outerwear, dresses, sportswear, and women's suits, under various licensed brands such as Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld.

Non-Licensed Products

The company offers non-licensed products, including outerwear, dresses, sportswear, and women's suits, under its own proprietary brands such as G-III, Winlit, and Jessica Howard.

Women's Apparel

G-III Apparel Group, Ltd. designs, manufactures, and distributes women's apparel, including dresses, sportswear, and suits, under various licensed and proprietary brands.

Men's Apparel

The company offers men's apparel, including outerwear, sportswear, and suits, under licensed and proprietary brands.

Accessories

G-III Apparel Group, Ltd. designs, manufactures, and distributes accessories, including hats, scarves, belts, and bags, under various licensed and proprietary brands.

8. G-III Apparel Group, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

G-III Apparel Group, Ltd. operates in a competitive industry with many substitutes available, but the company's strong brand portfolio and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

G-III Apparel Group, Ltd. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network reduce the dependence on any single customer.

Bargaining Power Of Suppliers

G-III Apparel Group, Ltd. has a large number of suppliers, which reduces the bargaining power of individual suppliers. However, the company's dependence on a few key suppliers for raw materials and components may give them some bargaining power.

Threat Of New Entrants

The apparel industry has high barriers to entry, including significant capital requirements, complex supply chains, and established brand recognition. These barriers make it difficult for new entrants to compete with established players like G-III Apparel Group, Ltd.

Intensity Of Rivalry

The apparel industry is highly competitive, with many established players competing for market share. G-III Apparel Group, Ltd. faces intense competition from other apparel companies, which may lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.43%
Debt Cost 8.35%
Equity Weight 76.57%
Equity Cost 15.91%
WACC 14.14%
Leverage 30.60%

11. Quality Control: G-III Apparel Group, Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.38$

Current Price

30.38$

Potential

-0.00%

Expected Cash-Flows