Overview

• US fashion apparel firm's fiscal Q1 sales fell 8% but beat analyst expectations

• Adjusted EPS for fiscal Q1 was negative but beat analyst expectations

• Net income rose sharply due to a one-time tariff recovery benefit

Outlook

• G-III Apparel Group raises fiscal 2027 net income guidance to $171 mln-$175 mln

• Company expects fiscal 2027 net sales of about $2.71 bln

• G-III Apparel Group sees Q2 net sales at $570 mln and EPS between $0.15-$0.25

Result Drivers

• TARIFF RECOVERY - Net income and gross margin were boosted by a one-time benefit from the expected recovery of previously incurred tariffs

• CORE BRAND MOMENTUM - Co said continued momentum in its go-forward portfolio and healthy full-price selling contributed to gross margin expansion

Company press release: ID:nGNX3fvqd7

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$536 mln	$529.92 mln (3 Analysts)
Q1 Adjusted EPS	Beat	-$0.21	-$0.30 (3 Analysts)
Q1 Net Income		$66.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for G-III Apparel Group Ltd is $31.50, about 1.7% below its June 4 closing price of $32.04

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 10 three months ago

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