G-III Apparel Expects Fall In Q2 Profit, Backs Annual Sales View; Sees Add. $135 Mln Tariff Expenses

(RTTNews) - G-III Apparel Group, Ltd. (GII), a clothing company, said on Friday that it expects a decline in earnings and sales for the second quarter, hurt by supply chain challenges and timing shifts in certain programs into the second half.

For the second quarter of fiscal 2026, the company expects net income of $1 million to $6 million, or $0.02 to $0.12 per share. For the second quarter of fiscal 2025, G-III had posted net earnings of $24.2 million, or $0.53 per share.

For the second quarter, the Group projects sales of approximately $570 million, lower than $644.8 million of last year's second quarter.  

For fiscal 2026, citing uncertainty around tariffs and related macroeconomic conditions, G-III Apparel has withdrawn its earnings outlook announced on March 13.

The company, however, has reaffirmed its full-year sales guidance of around $3.14 billion, lower than $3.18 billion of fiscal 2025.

Further, G-III Apparel anticipates the unmitigated cost of tariffs on goods imported into the U.S. will result in additional expense of around $135 million, which is expected to primarily be weighted to the second half. Therefore, the company aims to offset these costs through diversifying its sourcing mix and vendor discounts, selective price increases, and other cost saving initiatives.