G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States and internationally. It operates through two ...
G-III Apparel Group, Ltd. is an American fashion and apparel company headquartered at 512 Seventh Avenue in New York City’s Garment District. The business traces its roots to 1956, when Aron Goldfarb established a women’s leather outerwear company. Over time, G-III developed from an outerwear specialist into a diversified apparel ...G-III Apparel Group, Ltd. is an American fashion and apparel company headquartered at 512 Seventh Avenue in New York City’s Garment District. The business traces its roots to 1956, when Aron Goldfarb established a women’s leather outerwear company. Over time, G-III developed from an outerwear specialist into a diversified apparel platform with capabilities spanning design, sourcing, manufacturing coordination, distribution, licensing, brand management, and retail. Morris Goldfarb, Aron Goldfarb’s son, has served as chairman and chief executive officer since the company’s formation as G-III and remains the central figure in its strategic direction.
The company operates through Wholesale Operations and Retail Operations. Its product categories include outerwear, dresses, sportswear, swimwear, women’s suits, performance wear, suit separates, athleisure, jeans, footwear, handbags, small leather goods, cold-weather accessories, and luggage. G-III’s business model relies on a combination of owned intellectual property and licensed brand relationships. Owned or controlled brands identified in the supplied information include DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Andrew Marc, Eliza J, Jessica Howard, Marc New York, Sonia Rykiel, Wilsons Leather, and various G-III labels. Licensed relationships have included major names such as Calvin Klein, Tommy Hilfiger, Nautica, Champion, Cole Haan, Converse, Dockers, Kenneth Cole, Levi’s, Vince Camuto, and others. The portfolio can change as licensing agreements are renewed, expanded, or discontinued.
G-III distributes products through department stores, specialty retailers, mass-market and off-price channels, digital commerce, online retail partners, and company-operated or branded retail locations. It also participates in licensed team-sports apparel through partnerships associated with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, colleges, and universities. This structure gives the company access to multiple customer segments and price points, but it also exposes G-III to fashion cycles, inventory markdowns, retailer concentration, licensing costs, foreign sourcing risks, freight costs, tariffs, and changes in consumer spending.
The supplied trailing-twelve-month financial data indicates approximately $1.50 billion of market capitalization, an enterprise value of about $1.40 billion, a gross margin of roughly 42.7%, an operating margin near 8.0%, and a net margin near 4.3%. The company reported strong liquidity, including a current ratio of approximately 3.18 and a quick ratio of approximately 2.26, while debt-to-equity was about 0.16. Free cash flow was approximately $192 million, and the indicated price-to-earnings ratio was about 11.9. These figures suggest a relatively asset-supported apparel business with meaningful working-capital requirements, particularly inventory and receivables. Apparel profitability remains sensitive to product demand, sourcing costs, promotional activity, seasonal inventory, and the success of brand launches. The company’s stated strategic opportunity is to grow its owned brands, strengthen global distribution, expand digital and retail channels, and use its brand-management and licensing expertise to create durable, profitable fashion businesses.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.0B
-7.0%
-30.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$67.4M
-65.2%
+308.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+38.4%
-3.9%
+80.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+5.3%
-44.1%
+586.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.3%
-62.6%
+399.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$263.9M
-3.4%
-104.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+8.9%
+3.9%
-106.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
16.2%
-2.2%
-0.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.69x
+2.9%
+18.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for standing by. Welcome to the G-III Apparel Group First Quarter Fiscal 2027 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Neal Nackman, Chief Financial Officer. Sir, please go ahead.
Neal Nackman: Good morning, and thank you for joining us. Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guaranteed and actual results may differ materially from those expressed or implied in forward-looking statements. Important factors that could cause actual results of operations or the financial condition of the company to differ are discussed in the documents filed by the company with the SEC. The company undertakes no duty to update any forward-looking statements. In addition, during the call, we will refer to non-GAAP gross profit, non-GAAP net income and loss, non-GAAP net income and loss per share and adjusted EBITDA, which are all non-GAAP financial measures. We have provided reconciliations of these non-GAAP financial measures to GAAP measures in our press release, which is also available on our website. I will now turn the call over to our Chairman and Chief Executive Officer, Morris Goldfarb.
Morris Goldfarb: Thank you, Neal, and thank you, everyone, for joining us. We're very pleased with our first quarter performance, which came in ahead of expectations driven by continued momentum across our go-forward portfolio and disciplined management of the P&L. Net sales were $536 million ahead of guidance, the quality of total company sales continues to strengthen, driven by a meaningful increase in full price sales versus the prior year. Our go-forward portfolio delivered growth even as the top line was pressured by the planned loss of PVH brand revenues. We saw growth in our go-forward portfolio in both North America and Europe despite the macroeconomic challenges in the European market. Non-GAAP loss per share was $0.21, which was also ahead of our guidance range for the quarter. Importantly, we delivered gross margin expansion for the first time since fiscal 2025, reflecting healthy full price selling, strong inventory management, a shift towards owned brands and tariff mitigation efforts. Non-GAAP gross margins in the first quarter were up 350 basis points versus the prior year. Our balance sheet remains very healthy and we ended the first quarter with cash of $394 million and inventories down 8% versus prior year. The macroeconomic backdrop remains volatile with the ongoing conflict in the Middle East impacting global consumer sentiment. Despite this, we're executing with discipline and our brands continue to gain share helping to exceed our expectations for the first quarter and increase our outlook …
