G-III Apparel raises full-year earnings forecast as strong margins offset sales decline in third quarter.

G-III Apparel has announced an increase in its full-year earnings forecast following a robust third quarter that surpassed expectations. While the company saw its sales drop 9% to $988.6 million during the period, its profitability metrics provided a stronger-than-anticipated performance. The announcement reflects a strategic success in managing gross margins and operational efficiency during a challenging retail environment.

For the three months ending October 31, the New York-based firm logged earnings of $80.6 million, or $1.84 per diluted share. This compares to the prior year’s third quarter, where the company reported significantly higher earnings of $114.8 million, or $2.55 per diluted share. Despite the year-over-year decline in profits, G-III’s chairman and chief executive officer, Morris Goldfarb, stated that the company "delivered a strong third quarter with gross margins and earnings far exceeding our expectations."

Goldfarb attributed the outperformance to several key factors, specifically highlighting the strength of G-III's "go-forward portfolio" of owned brands. The company owns prominent labels such as Karl Lagerfeld, Sonia Rykiel, and DKNY. The CEO also cited a favorable mix of full-price sales and effective mitigation efforts against tariffs as primary drivers behind the strong results, noting that the company's brands are "resonating with consumers" during the current holiday season.

Based on this success, G-III is raising its fiscal 2026 earnings guidance. Goldfarb explained that the increased forecast reflects the third-quarter outperformance, though it remains "tempered by the uncertainties around the consumer environment and tariff-related margin pressures." The company continues to navigate these external challenges while focusing on maintaining demand for its products.

In other developments, G-III Apparel remains involved in a significant legal battle initiated in June when the company filed a $250-million lawsuit against rival fashion giant PVH Corp. The lawsuit alleges that PVH breached licensing agreements and interfered in business relationships. The complaint was filed in New York state court and targets PVH as well as its licensing divisions for Calvin Klein Inc. and Tommy Hilfiger.