G-III’s growth in Q1 nearly compensated for the revenue loss from the discontinued Calvin Klein jeans and sportswear licence business.

The company's earnings per diluted share reached $0.17 in Q1 FY26, with net income totalling $7.76m, increasing from $0.12 per diluted share and a net income of $5.80m in the same quarter of the previous year.

In March, when G-III Apparel Group released its fourth-quarter and full-year results, the company had projected net income for Q1 to be between $2.0m and $7.0m, translating to diluted earnings per share ranging from $0.05 to $0.15.

During the earnings conference call, G-III chairman and chief executive officer Morris Goldfarb said: "We delivered solid first quarter results with earnings outperformance that exceeded the high end of our guidance.

“These results are a testament to our ability to execute our strategic priorities by leveraging our diverse portfolio of globally recognised brands and our unwavering commitment to disciplined brand building and operational excellence.”

During the quarter ending 30 April 2025, G-III reported that its net sales met expectations despite a 4% decrease to $583.61m from $609.75m in the previous year's quarter.

Gross profit also saw a decline to $246.54m in Q1 FY26 from $258.89m during the same period last year.

Merchandising efforts and execution initiatives within the company's retail segment turnaround strategy contributed to the improvement in gross margin percentage along with robust digital sales growth of Donna Karan products, the company said in the earnings calls.

G-III recorded selling, general and administrative expenses of $231.49m for the quarter, a decrease from $236.62m in Q1 FY25. This is primarily due to lower advertising costs compared to higher expenditures related to relaunching Donna Karan brand and DKNY marketing campaigns in the previous year.

Looking ahead, G-III has maintained its net sales forecast for fiscal 2026 but has withdrawn its guidance on net income, non-GAAP net income, and adjusted EBITDA due to uncertainties surrounding tariffs and macroeconomic conditions.

The company expects unmitigated tariff costs on imported goods into the US could add approximately $135.0m in expenses, mostly affecting the latter half of the year.

To mitigate these costs, G-III plans to diversify its sourcing mix and vendor discounts, implement selective price increases, and engage in other cost-saving measures.

“We are reaffirming our net sales guidance for fiscal 2026 and working diligently to mitigate the impact of tariffs. Our experienced management team has a proven track record of successfully navigating periods of uncertainty, and we view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share,” Goldfarb added.