G-III Apparel Group, Ltd., a publicly traded American apparel company, specializes in the design, manufacture, and marketing of a diverse portfolio of well-known brands, including DKNY, Karl Lagerfeld, Donna Karan, and various licensed brands. For fiscal year 2025, G-III reported a stable performance with an overall rise in net sales, achieving $3.18 billion, representing a 2.7% increase from $3.10 billion in fiscal year 2024. This growth was bolstered by over 20% growth in sales for its key owned brands, overshadowing a decline of approximately $188 million, or 15%, in sales from Calvin Klein and Tommy Hilfiger due to expirations of their licenses.

For the fourth quarter of fiscal 2025, G-III recorded net sales of $840 million, marking a 10% increase from $765 million in the same period of the previous year. The wholesale segment accounted for $799 million of this total, compared to $729 million last year, illustrating the company’s successful sales strategy. The retail segment generated $56 million, a slight increase from $51 million in the previous fourth quarter.

Gross margins improved, with the overall gross margin percentage rising to 39.5% in Q4 of fiscal 2025 from 36.9% in the same period in fiscal 2024. In the wholesale segment, gross margin increased to 38.1% from 35.6%, driven by stronger performance and higher penetration of owned brands. Retail operations experienced an even steeper rise, with the gross margin percentage increasing to 48.3% from 44.2%, due to effective merchandising and operational improvements.

For the fiscal year ending January 31, 2025, G-III’s non-GAAP net income rose to $204 million, reflecting a 9% increase from $190 million, with corresponding non-GAAP net income per diluted share increasing from $4.04 to $4.42. The company’s balance sheet also showed strength, with total debt reduced by 99% to approximately $6.2 million, down from $417.8 million last year. Inventory levels decreased approximately 8% to $478 million, well-aligned with future sales expectations.

Looking ahead to fiscal year 2026, G-III anticipates net sales of approximately $3.14 billion, representing a slight decrease of 1% from fiscal 2025. The company projects non-GAAP net income for fiscal 2026 to fall between $192 million and $197 million, translating to between $4.15 and $4.25 per diluted share, down from the previous year’s $4.42. For the first quarter of fiscal 2026, net sales are expected to be around $580 million, down from $610 million year-over-year, with non-GAAP net income projected between $2 million and $7 million or $0.05 to $0.15 per share.

G-III’s focus on strategic initiatives, including expanding its owned brands and leveraging partnerships, continues to drive its financial performance, though challenges remain due to the transition away from certain licenses. The company intends to maintain investments in operational capabilities and marketing to bolster ongoing growth in its remaining brands.