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華爾街日報G-III Apparel Group, Ltd. Reports Financial Results for the Third Quarter and Nine Months Ended October 31, 2025
G-III Apparel Group, Ltd. Reports Financial Results for the Third Quarter and Nine Months Ended October 31, 2025
G-III Apparel Group, Ltd. reported its financial results for the three and nine months ended October 31, 2025. The company’s net sales increased by 12.1% to $1.23 billion for the nine months ended October 31, 2025, compared to $1.10 billion for the same period in 2024. Gross profit margin decreased to 24.1% for the nine months ended October 31, 2025, compared to 25.3% for the same period in 2024. Net income was $34.1 million for the nine months ended October 31, 2025, compared to $43.9 million for the same period in 2024. The company’s cash and cash equivalents decreased to $143.1 million as of October 31, 2025, compared to $173.1 million as of January 31, 2025. The company’s debt increased to $444.9 million as of October 31, 2025, compared to $394.9 million as of January 31, 2025.
Overview
G-III is a global leader in fashion with expertise in design, sourcing, distribution and marketing, which enables the company to fuel growth across a portfolio of over 30 globally recognized owned and licensed brands. The company develops products across diverse lifestyle categories including outerwear, dresses, sportswear, suit separates, athleisure, jeans, swimwear, handbags, footwear, accessories and luggage. G-III’s brands are positioned to sell at various price points with global distribution across a diverse mix of channels and geographies.
Segments
G-III reports based on two segments: wholesale operations and retail operations.
The wholesale operations segment includes sales of products to retailers under owned, licensed and private label brands, as well as sales related to the Karl Lagerfeld and Vilebrequin businesses. Wholesale revenues also include royalty revenues from license agreements.
The retail operations segment consists primarily of direct sales to consumers through the company’s company-operated stores and digital sites for the DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather brands.
Trends Affecting the Business
Key trends impacting G-III include:
Tariffs: Additional tariffs on imports are increasing costs and impacting demand. G-III is working to mitigate the impact through vendor negotiations, price increases and alternative sourcing.
Industry Trends: Retail store closures, increased focus on digital sales, retail consolidation, and retailer desire to consolidate vendors.
Calvin Klein and Tommy Hilfiger Licenses: Expiration of these major licenses will significantly impact sales, but G-III is working to offset this through growth of its owned brands.
Litigation with PVH Corp: G-III has filed a lawsuit against PVH Corp. related to the Calvin Klein and Tommy Hilfiger licenses.
Other Factors: Political environment, foreign currency fluctuations, tax changes, inflation, interest rates, and supply chain challenges.
Results of Operations
For the three months ended October 31, 2025:
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Net Sales | $988.6M | $1.09B | -9.3% |
| Gross Profit | $381.5M | $432.1M | -11.7% |
| Gross Margin | 38.6% | 39.8% | -1.2 pts |
| SG&A Expenses | $260.4M | $259.2M | +0.5% |
| Operating Income | $112.3M | $166.2M | -32.4% |
| Net Income | $80.1M | $114.5M | -30.0% |
The decreases were primarily driven by lower sales of Calvin Klein and Tommy Hilfiger licensed products, partially offset by growth in the company’s owned brands like Karl Lagerfeld and Donna Karan.
For the nine months ended October 31, 2025:
| Metric | YTD 2025 | YTD 2024 | Change |
|---|---|---|---|
| Net Sales | $2.19B | $2.34B | -6.4% |
| Gross Profit | $878.5M | $966.9M | -9.1% |
| Gross Margin | 40.2% | 41.3% | -1.1 pts |
| SG&A Expenses | $718.8M | $724.9M | -0.8% |
| Operating Income | $158.2M | $221.3M | -28.5% |
| Net Income | $99.3M | $144.4M | -31.3% |
The decreases were again primarily driven by lower sales of Calvin Klein and Tommy Hilfiger licensed products, partially offset by growth in the company’s owned brands.
Liquidity and Capital Resources
G-III relies on cash flows from operations, cash on hand, and its revolving credit facility to meet its cash needs. As of October 31, 2025, the company had $184.1 million in cash and $700 million in availability under its revolving credit facility.
Key liquidity items include:
- Redemption of $400 million in senior secured notes in August 2024
- Entering into a new $700 million revolving credit facility in June 2024
- Ongoing share repurchase program, with 5.6 million shares remaining authorized for purchase
- Cash flow from operations of $71.6 million in the first nine months of fiscal 2026
G-III continues to maintain a strong liquidity position to support its operations and strategic initiatives.
Outlook
G-III faces headwinds from the expiration of its major Calvin Klein and Tommy Hilfiger licenses, but is working to offset this through growth of its owned brands and new licensed brand partnerships. The company remains focused on diversifying its portfolio, expanding digital channels, and improving operational efficiency. While near-term results may be impacted by macroeconomic factors, G-III is well-positioned to navigate the challenges and capitalize on opportunities in the dynamic fashion industry.