G-III Apparel Shares Surge on Strong Quarterly Performance and Strategic Moves

G-III Apparel Group delivered a robust third-quarter performance that exceeded market expectations, prompting the company to raise its full-year profit forecast and initiate a quarterly dividend for the first time. In a separate strategic move, the firm also announced one-time restricted stock unit (RSU) awards to key executives as part of its succession planning.

The company’s non-GAAP diluted earnings per share for the third fiscal quarter, which ended in October, came in at $1.90. This result significantly surpassed the analyst consensus range of $1.60 to $1.61. The strong earnings were attributed to improved gross margins and a favorable sales mix leaning toward full-price selling.

Despite the earnings beat, net sales declined by 9% year-over-year to $988.65 million, slightly below the consensus estimate of approximately $1.01 billion. Management cited reduced revenue from the licensed Calvin Klein and Tommy Hilfiger brands, whose agreements are nearing expiration, as the primary reason for the top-line contraction. In contrast, the company’s owned brand portfolio—including Donna Karan, DKNY, Karl Lagerfeld, and Vilebrequin—demonstrated resilience and contributed positively to results.

Based on this quarterly strength, G-III raised its fiscal 2026 outlook. The new non-GAAP EPS guidance is $2.80 to $2.90, up from the previous range of $2.55 to $2.75. The adjusted EBITDA forecast was also increased to $208–213 million from $198–208 million. The revenue outlook was modestly adjusted downward to approximately $2.98 billion from $3.02 billion, a revision that incorporates an estimated $65 million impact from unmitigated tariffs.

Capital Return and Executive Incentives

In a notable development for shareholders, the board of directors approved the company’s inaugural quarterly cash dividend of $0.10 per share, payable later this month. This move signals a commitment to returning capital to investors.

Should investors sell immediately? Or is it worth buying G III Apparel?

Concurrently, G-III disclosed one-time RSU grants intended for succession and retention purposes. These awards, scheduled for allocation on December 11, include substantial grants to key personnel such as Jeffrey Goldfarb ($5 million) and Dana Perlman ($2 million). The awards are designed to fully vest after a five-year period, aligning the long-term interests of these executives with those of the company.

Market Response and Analyst Commentary

The financial community reacted favorably to the report. In pre-market trading following the announcement, the stock jumped 7.89% and maintained its upward momentum in subsequent sessions. Several research firms revised their price targets upward in response:
- Telsey Advisory Group: Raised from $30 to $34 (Market Perform rating)
- KeyBanc Capital Markets: Increased from $33 to $35 (Overweight rating)
- UBS: Lifted from $28 to $32 (Neutral rating)
- BTIG: Boosted from $32 to $34 (Buy rating)

From a technical analysis perspective, the stock’s short-term and long-term moving averages are viewed positively, with a support level identified around $30.80.

Forward-Looking Considerations

The key challenge for G-III will be its ability to further offset the revenue decline from the expiring licensed brands. The company’s elevated earnings target appears achievable if margins on owned brands remain stable and full-price sales continue to perform well. However, an accelerated sales drop from the license wind-down could pressure the revenue goal.

Investors will next focus on the fourth-quarter and full fiscal 2026 results, expected to be released in March 2026. This report will provide critical insight into whether the company can translate its current profitability into more sustainable long-term growth.