Q1 2026 G-III Apparel Group Ltd Earnings Call Transcript
Key Points
- G-III Apparel Group Ltd (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 (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 (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- The company has withdrawn its net income, non-GAAP net income, and adjusted EBITDA guidance for fiscal 2026 due to tariff uncertainties.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 (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.
Good day, and welcome to the G-III Apparel Group first quarter fiscal 2026 earnings call. (Operator Instructions) As a reminder, this call may be recorded.
I would now like to turn the call over to Neal Nackman, company Chief Financial Officer. Please go ahead.
Good morning and thank you for joining us. Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guaranteed, and actual results may differ materially from those expressed or implied in forward-looking statements.
Important factors that could cause actual results of operations or the financial condition of the company to differ are discussed in the documents filed by the company with the SEC. The company undertakes no duty to update any forward-looking statements.
In addition, during the call, we will refer to non-GAAP
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