G-III Apparel on Tuesday raised its full-year earnings forecast on the back of better-than-expected earnings in the third quarter, which also saw the U.S. firm’s sales drop 9% to $988.6 million.

The New York-based firm logged earnings of $80.6 million, or $1.84 per diluted share during the three months ending October 31, compared to $114.8 million, or $2.55 per diluted share, in the prior year’s third quarter.

While profits were lower than the same period last year, the owner of Karl Lagerfeld, Sonia Rykiel, and DKNY brands, “delivered a strong third quarter with gross margins and earnings far exceeding our expectations,” according to  ​said Morris Goldfarb, G-III’s chairman and chief executive officer.

“This was driven by the strength of our go-forward portfolio, particularly our owned brands, as well as a healthy mix of full-price sales and our mitigation efforts against tariffs. I am pleased with how our brands are resonating with consumers and encouraged by the solid demand we have seen throughout the holiday season to date,” continued Goldfarb, who said his company is raising its fiscal 2026 earnings guidance to “reflect our third quarter outperformance tempered by the uncertainties around the consumer environment and tariff-related margin pressures.”

In June, G-III Apparel filed a $250-million lawsuit against PVH Corp., escalating tensions between the two fashion giants with allegations of breached licensing agreements and interference in business relationships. 
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The complaint, filed in New York state court, targets PVH and its Calvin Klein Inc. and Tommy Hilfiger licensing divisions.