Latest news with #GIIIApparel
Yahoo
7 hours ago
- Business
- Yahoo
G-III Apparel Group Ltd (GIII) Q1 2026 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $584 million for Q1 fiscal 2026, compared to $610 million in the same period last year. Wholesale Segment Sales: $563 million, down from $598 million in the previous year. Retail Segment Sales: $36 million, up from $31 million in the previous year. Gross Margin: 42.2% for Q1 fiscal 2026, compared to 42.5% in the previous year's first quarter. Retail Operations Gross Margin: 53.5%, up from 47% in the prior year's period. Non-GAAP SG&A Expenses: $231 million, down from $237 million in the previous year's first quarter. Non-GAAP Net Income: $8.4 million or $0.19 per diluted share, compared to $5.8 million or $0.12 per diluted share last year. Inventory: $456 million, a 5% decrease from the previous year's $480 million. Net Cash Position: Approximately $239 million, compared to $82 million in the prior year. Liquidity: Approximately $740 million. Full Fiscal Year 2026 Net Sales Guidance: Approximately $3.14 billion. Second Quarter Fiscal 2026 Net Sales Guidance: Approximately $570 million, compared to $645 million in the prior year. Second Quarter Fiscal 2026 Non-GAAP Net Income Guidance: Between $1 million and $6 million or between $0.02 and $0.12 per diluted share. Warning! GuruFocus has detected 7 Warning Signs with AVD. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. G-III Apparel Group Ltd (NASDAQ:GIII) delivered solid first-quarter results with earnings exceeding the high end of their guidance. The company's key owned brands, DKNY, Karl Lagerfeld, and Donna Karan, experienced double-digit growth, offsetting the loss from exited Calvin Klein licenses. G-III Apparel Group Ltd (NASDAQ:GIII) has a well-diversified supply chain across over 40 countries, reducing reliance on China to less than 20% of production. The company is actively working to mitigate the impact of tariffs through sourcing diversification, vendor negotiations, and selective retail price increases. G-III Apparel Group Ltd (NASDAQ:GIII) ended the quarter with a strong financial position, having approximately $740 million in cash and availability. The global macroeconomic environment remains uncertain, with potential unmitigated tariff impacts estimated at $135 million for fiscal 2026. Net sales for the first quarter were $584 million, a decrease from $610 million in the same period last year. The company has withdrawn its net income, non-GAAP net income, and adjusted EBITDA guidance for fiscal 2026 due to tariff uncertainties. The relaunch of the Sonia Rykiel brand was postponed due to production challenges and macroeconomic uncertainties. G-III Apparel Group Ltd (NASDAQ:GIII) anticipates a decrease in net sales for the second quarter of fiscal 2026 compared to the prior year, partly due to supply chain disruptions and timing shifts. Q: You mentioned taking price increases as part of your strategy. Are these increases focused on newer brands with limited distribution, and which product categories offer the most opportunity for price adjustments? A: Morris Goldfarb, CEO: We're working closely with retailers to adjust pricing in targeted areas, focusing on consumer acceptance. Our brands like Donna Karan and Karl Lagerfeld have strong pricing power due to their unique positioning and quality. We're not applying arbitrary increases but are strategically adjusting prices where consumers see value. Q: With the postponement of the Sonia Rykiel relaunch, how does this affect your guidance, and are you adjusting supply plans for potential demand changes in the second half? A: Morris Goldfarb, CEO: The postponement was due to production challenges and tariffs. It wasn't a significant business yet, so the impact is minimal. We're cautiously optimistic about the second half, with new launches expected to drive demand. We're managing inventory prudently to align with potential demand fluctuations. Q: How much of the Q2 revenue outlook is impacted by timing shifts, and how do you plan to mitigate the $135 million tariff impact? A: Neal Nackman, CFO: About half of the Q2 decrease is due to supply chain issues, with shifts affecting both Q3 and Q4. We're working on mitigating tariffs through pricing adjustments, sourcing diversification, and vendor negotiations. The process is ongoing, and we're focused on minimizing the impact. Q: Can you provide insights into your inventory levels for Q2 and expectations for the rest of the year? A: Neal Nackman, CFO: Inventory levels are aligned with sales growth expectations. We're accelerating product movement to avoid potential tariff impacts. While the environment is uncertain, we're managing inventory effectively to ensure stability. Q: With industry-wide consumer uncertainty and inventory builds, what are your expectations for promotions, and how will you navigate potential headwinds? A: Morris Goldfarb, CEO: We're not feeling significant pressure for promotions. Our products are well-positioned and in demand, including exiting brands like Tommy and Calvin. Our inventory levels are slightly low for current demand, indicating strong sell-through and minimal promotional pressure. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
G-III Apparel Pulls Certain FY Outlooks on Tariffs
G-III Apparel GIII -2.57%decrease; red down pointing triangle backed its full-year sales outlook, but the company pulled all other guidance for the year due to uncertainty around tariffs and macroeconomic conditions. The company behind fashion brands DKNY, Calvin Klein and Tommy Hilfiger said Friday that current tariffs are expected to result in costs of about $135.0 million this year, largely concentrated in the latter half.
