G-III Apparel | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 613.27 M

Revenue: As of FY2026 Q2, the actual value is USD 613.27 M, beating the estimate of USD 571.15 M.

EPS: As of FY2026 Q2, the actual value is USD 0.25, beating the estimate of USD 0.1074.

EBIT: As of FY2026 Q2, the actual value is USD 15.9 M.

Wholesale Operations Segment

• Net Sales: Decreased to $589.0 million for the three months ended July 31, 2025, from $620.3 million in the same period last year. The decrease was primarily due to a reduction in sales of Calvin Klein and Guess licensed products, partially offset by increased sales of Karl Lagerfeld products.
• Operating Profit: $16.6 million for the three months ended July 31, 2025, compared to $43.8 million in the same period last year.
• Gross Profit Percentage: 38.9% for the three months ended July 31, 2025, compared to 41.2% in the same period last year.

Retail Operations Segment

• Net Sales: Increased to $41.1 million for the three months ended July 31, 2025, from $37.2 million in the same period last year. The increase was driven by higher sales at Karl Lagerfeld Paris stores.
• Operating Loss: - $0.3 million for the three months ended July 31, 2025, compared to - $2.3 million in the same period last year.
• Gross Profit Percentage: 52.4% for the three months ended July 31, 2025, compared to 54.4% in the same period last year.

Cash Flow

• Net Cash Provided by Operating Activities: $168.9 million for the six months ended July 31, 2025, primarily due to net income, changes in accounts payable, accrued expenses, and accounts receivable.
• Net Cash Used in Investing Activities: - $19.2 million for the six months ended July 31, 2025, mainly due to capital expenditures.
• Net Cash Used in Financing Activities: - $41.3 million for the six months ended July 31, 2025, primarily due to share repurchases and taxes paid for net share settlements.

Future Outlook and Strategy

• Core Business Focus: The company plans to mitigate the loss of Calvin Klein and Tommy Hilfiger licensed products by expanding owned brands such as DKNY, Donna Karan, and Karl Lagerfeld through new product lines, marketing initiatives, international growth, and digital channel opportunities.
• Non-Core Business: The company is seeking to expand sales in its licensed brands portfolio, including team sports business and recent licenses for Nautica, Halston, Champion, Converse, and BCBG brands.