G-III raises guidance after Q3 results surpass expectations
G-III, which owns and licenses a portfolio of over 30 brands, now projects full-year net income to range between $121.0m and $126.0m, higher than its previous forecast of $112.0m to $122.0m.
Diluted earnings per share are now expected to be between $2.72 and $2.82, compared to prior guidance of $2.53 and $2.73.
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In the quarter ending 31 October 2025, G-III reported a gross margin of 38.6%. While this was down from 39.8% the previous year, it was above internal forecasts, supported by a stronger mix of full-price sales.
Net income for the period totalled $80.6m, which translates to $1.84 per diluted share.
Earlier, G-III had anticipated net income for the Q3 to be in the range of $62.0m to $72.0m, or diluted earnings per share between $1.43 and $1.63.
G-III chairman and CEO Morris Goldfarb said: “We delivered a strong third quarter with gross margins and earnings far exceeding our expectations. This was driven by the strength of our go-forward portfolio, particularly our owned brands, as well as a healthy mix of full-price sales and our mitigation efforts against tariffs. I am pleased with how our brands are resonating with consumers and encouraged by the solid demand we have seen throughout the holiday season to date.”
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By GlobalDataKey metrics from G-III’s Q3 report
G-III recorded net sales of $988.6m in Q3, representing a decrease of 9% compared to $1.09bn in the same period last year.
Gross profit for the quarter declined to $381.5m from $432.1m, while selling, general, and administrative expenses reached $260.4m from $259.2m in the previous year’s third quarter.
Inventory at quarter end was reported at $547.1m, up 3% from $532.5m a year earlier.
Total debt fell sharply to $10.6m from $224.2m at the end of the prior year’s third quarter, resulting in a net cash position of $173.5m compared with a net debt position of $119.5m last year.
Outlook for FY2026 and tariff impact
G-III expects net sales to be approximately $2.98bn versus earlier guidance of $3.02bn and actual net sales of $3.18bn in fiscal 2025.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for fiscal 2026 are forecast between $208.0m and $213.0m, up from previous guidance of $198.0m to $208.0m.
“Looking ahead, we are raising our fiscal 2026 earnings guidance to reflect our third quarter outperformance tempered by the uncertainties around the consumer environment and tariff-related margin pressures. With our powerful brand portfolio and best-in-class operating model, we are well-positioned to achieve our fiscal 2026 outlook,” Goldfarb added.
The company estimates that current tariff rates will have a gross impact of about $135m in fiscal 2026, with partial offsets through vendor participation, sourcing changes, and targeted price increases.
The remaining unmitigated impact included in guidance is now estimated at $65m.
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