G-III Apparel lowers fiscal forecast on expected tariff hits

G-III Apparel announced on Thursday sales for the second quarter fell 5% to $613.3 million, as the U.S. fashion group lowered its full-year guidance, citing macro-economic headwinds.

The New York-based company said net income for the three months ending July 31 was slashed to $10.9 million, or $0.25 per diluted share, compared to $24.2 million, or $0.53 per diluted share, in the prior year’s quarter.

Despite the quarterly drop, the company said it exceeded expectations across both net sales and earnings during the quarter, driven by the strong momentum of its fashion portfolio, led by DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin.

“These results highlight our ability to execute on our strategic priorities and leverage our powerful corporate platform to maximize the full potential of our globally recognized brands,” ​said Morris Goldfarb, G-III’s chairman and chief executive officer.

Looking ahead, G-III Apparel said it expects a total incremental tariff cost of approximately $155 million for fiscal 2026, partially offset through vendor participation, strategic sourcing shifts and targeted price increases. The remaining unmitigated impact, is estimated at $75 million, primarily affecting the second half of the year.

As a result, the company it now forecasts net income to be between $112 million and $122 million, or diluted earnings per share between $2.53 and $2.73, compared to net income of $193.6 million, or $4.20 per diluted share, for fiscal 2025.

Net sales are expected to be approximately $3.02 billion, compared to net sales of $3.18 billion for fiscal 2025.

“Looking ahead, we have updated fiscal 2026 guidance to reflect the current macro environment, a more cautious outlook from our retail partners, as well as the impact of tariffs on our top and bottom lines. We are actively mitigating tariff pressures through a combination of vendor participation, selective sourcing shifts, and targeted price increases.”

In June, G-III Apparel filed a $250-million lawsuit against PVH Corp., escalating tensions between the two fashion giants with allegations of breached licensing agreements and interference in business relationships. 
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The complaint, filed in New York state court, targets PVH and its Calvin Klein Inc. and Tommy Hilfiger licensing divisions.