G-III Apparel Group Ltd

G-III Apparel Group raised its fiscal 2027 adjusted earnings per share guidance to $2.20-$2.30, citing Donna Karan as one of its most powerful growth opportunities. Donna Karan sales increased more than 45% year over year in the second quarter of fiscal 2027, with digital performance supported by growth in traffic, conversion and average unit retail, and the dress business a standout. Handbags delivered double-digit growth during the quarter, and footwear distribution is expanding this fall through additional doors at Nordstrom, Macy's and Dillard's. Kendall Jenner is the face of Donna Karan's Fall 2026 global campaign, and the brand will participate in Macy's celebration of American fashion with a limited-edition capsule. G-III continues to expect its go-forward portfolio to grow at a high-single-digit rate, excluding Marc Jacobs from the outlook.

G-III Apparel Group reported second-quarter fiscal 2027 earnings that beat guidance and raised its full-year non-GAAP earnings per diluted share guidance to $2.20 to $2.30, while reiterating net sales guidance of approximately $2.71 billion. The company also completed the acquisition of Marc Jacobs, which it expects to be slightly dilutive for the remainder of fiscal 2027 but accretive thereafter. Second-quarter net sales were $554 million, down from $613 million a year earlier, reflecting the exit of Calvin Klein and Tommy Hilfiger licenses, partially offset by high single-digit growth in the go-forward portfolio. Gross margin expanded 440 basis points to 45.2%, and non-GAAP EPS was $0.26, above the guidance range of $0.15 to $0.25. The company ended the quarter with nearly $530 million in cash and approximately $1 billion in available liquidity, and it expects Marc Jacobs to generate approximately $360 million in global sales this year, with a long-term goal of $1 billion in annual revenue.

G-III Apparel Group raised its fiscal 2027 non-GAAP earnings per diluted share guidance to $2.20 to $2.30, up from the prior $2.15 to $2.25, while reiterating net sales of approximately $2.71 billion, after reporting second-quarter results that beat on earnings but missed on revenue. The company completed its acquisition of Marc Jacobs, which CEO Morris Goldfarb called transformational, and management outlined a path for the brand to reach $1 billion in annual revenue, focusing on handbags, small leather goods, and accessories, with apparel as a major untapped opportunity. For the second quarter ended July 31, 2026, net sales were $555 million, down 10% from $613 million a year earlier, while gross margin expanded 440 basis points to 45.2%, and non-GAAP net income was $11.5 million, or $0.26 per diluted share. The guidance excludes Marc Jacobs, which will be incorporated when the company reports third-quarter results in December, and assumes current tariff rates for the remainder of the year. Management noted Europe weakness, with traffic down dramatically, and said shipping and weather could shift revenue between quarters.

G-III Apparel Group has completed its acquisition of Marc Jacobs from LVMH Moët Hennessy Louis Vuitton in deals totaling roughly $925 million, with plans to grow the brand to $1 billion in sales. CEO Morris Goldfarb, who previously navigated the loss of Tommy Hilfiger and Calvin Klein licenses by relaunching Donna Karan, will apply lessons learned from that experience. Marc Jacobs will remain as creative director, and the company plans to relaunch the Marc by Marc Jacobs line for department stores. In the second quarter, G-III's net income rose to $20.2 million from $10.9 million a year ago, and the company raised its full-year earnings guidance to $2.20-$2.30 per share.

G-III Apparel Group reported that direct-to-consumer sales jumped nearly 40% year over year in the first quarter of fiscal 2027, driven by strong digital performance across its owned brands. DKNY's North American DTC business posted double-digit comparable-store growth and dkny.com sales rose more than 40%, while Donna Karan's online sales increased nearly 60% on higher traffic, stronger conversion rates, and improved average unit retail values. The company is expanding its digital presence beyond owned websites through retail partner sites, Amazon, Zalando, and marketplace channels, and it plans to continue investing in data capabilities, artificial intelligence, and digital infrastructure to enhance personalization and marketing effectiveness. Owned brands now account for more than 60% of revenues, up from roughly 40% in fiscal 2020. G-III shares have gained 13.7% over the past six months, and the stock carries a Zacks Rank of 1, or Strong Buy.