G-III Apparel Group reported a 10% decline in second-quarter sales on Wednesday, as the company continued to navigate the loss of its Calvin Klein and Tommy Hilfiger businesses.
For the second quarter ended July 31, 2026, G-III’s net sales fell to $554.1 million, compared with $613.3 million in the year-ago period. The New York-based apparel company attributed the decline in part to the loss of approximately $460 million in annual sales associated with its Calvin Klein and Tommy Hilfiger businesses.
Despite the lower revenue, gross margin increased 440 basis points to 45.2%, compared with 40.8% a year earlier. G-III said the improvement was driven by price increases and an ongoing shift in its business mix toward higher-margin owned brands.
Net income rose to $20.2 million, or $0.46 per diluted share, from $10.9 million, or $0.25 per diluted share, in the prior-year quarter.
Morris Goldfarb, G-III’s chairman and chief executive officer, said, “Our second quarter results reflect strong execution across the organization, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go-forward portfolio grew at a high-single digit rate during the quarter, reinforcing our confidence in the power of our brands and business model.”
Earlier this month, G-III acquired Marc Jacobs’ operations and entered into a long-term licensing agreement through a joint venture with WHP Global. The American label changed hands in a $925 million deal.
“Our strategic transformation has taken a meaningful step forward with the addition of Marc Jacobs. The acquisition significantly strengthens our portfolio and further enhances our position as a global fashion leader,” added Goldfarb.
Looking ahead, for the full fiscal year, G-III expects net sales of approximately $2.71 billion, compared with $2.96 billion in fiscal 2026. The forecast incorporates the previously announced loss of approximately $460 million in sales from Calvin Klein and Tommy Hilfiger products.
Full-year net income is expected to reach between $181 million and $185 million, or $4.10 to $4.20 per diluted share, compared with $67.4 million, or $1.51 per diluted share, last year.
