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G‑III Apparel Raises 2027 Outlook After Q1 Beat and Big Margin Improvement

Stronger results and a healthy cash balance give the company room to pursue a planned Marc Jacobs purchase.

Overview

  • G‑III reported a first-quarter adjusted loss of $0.21 per share versus an expected $0.30 loss and revenue of $535.96 million versus a $529.92 million consensus, beating analyst estimates.
  • Adjusted gross margin widened 350 basis points to 45.7% on higher full‑price selling, a larger mix of owned brands, tighter inventory control, and tariff mitigation efforts.
  • Management raised fiscal 2027 adjusted EPS guidance to $2.15–$2.25 and increased expected gross‑margin expansion to about 400 basis points while keeping revenue guidance near $2.71 billion.
  • The company plans to invest roughly $500 million with WHP Global to acquire Marc Jacobs, and says it will fund the deal with cash on hand and available credit facilities.
  • Shares jumped about 6.8–7% and traded near their 52‑week high, a move that analysts say was amplified by elevated short interest as owned brands and digital sales showed strong growth.