G-III Apparel Flags Tariff Risks But Still Raises Profit Outlook

G-III Apparel Group Ltd. (NASDAQ:GIII) stock rose Tuesday after the fashion company delivered stronger profit even as sales slipped.

The company reported third-quarter adjusted earnings per share of $1.90, beating the analyst consensus estimate of $1.61.

Metrics

Quarterly sales of $988.649 million (down 9% year over year) missed the Street view of $1.012 billion.

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In the quarter under review, gross profit decreased to $381.533 million, lower than $432.131 million a year ago.

Operating profit decreased to $112.301 million, lower than $166.335 million a year ago.

Adjusted EBITDA in the quarter under review was $124.881 million, lower than $174.363 million at the end of the prior-year period.

Inventories increased 3% to $547.1 million this year, while total debt decreased 95% to $10.6 million.

G-III exited the quarter with cash and cash equivalents worth $184.063 million, significantly higher than $104.686 million in the year-ago period.

Dividend

G-III announced that its Board of Directors has approved a new quarterly dividend program to evolve its strategic use of capital.

The firm declared an initial quarterly cash dividend of 10 cents per share. The dividend will be paid on December 29, 2025.

Outlook

“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,” said Morris Goldfarb, chairman and CEO.

The company updated its fiscal 2026 guidance following a strong third-quarter performance, while factoring in a cautious consumer outlook and tariff pressures.

It expects tariffs to have a gross impact of about $135 million, partially offset by supplier support, sourcing changes, and selective price increases, leaving a net unmitigated impact of roughly $65 million baked into guidance.

G-III Apparel raises 2026 adjusted earnings per share guidance from $2.55-$2.75 to $2.80-$2.90 versus the $2.68 estimate. The firm lowers 2026 sales guidance from $3.020 billion to $2.980 billion, versus $3.020 billion estimate.

Adjusted EBITDA for fiscal 2026 is expected to be between $208.0 million and $213.0 million (previous guidance $198.0 million and $208.0 million).

GIII Price Action: G-III Apparel Group shares were up 5.51% at $31.30 at the time of publication on Tuesday, according to Benzinga Pro data.

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