GIII Stock Forecast & Price Target

G-III Apparel Group Ltd showcased impressive growth with over 30% topline growth in North America, primarily driven by strong demand for its lifestyle offerings, which contributed to margin expansion. The company's wholesale operations have seen international success, particularly in Europe and the Middle East, with solid performances noted in categories such as dresses and accessories, further supported by increasing average unit revenues. Although there may be some near-term gross margin pressure due to higher inventory levels, the outlook remains positive with expectations of normalization and expansion driven by exiting licenses and increased penetration of owned brands.

G-III Apparel Group is facing a challenging outlook due to a substantial decline in open-to-buys for key licensed brands, Calvin Klein and Tommy Hilfiger, which is expected to negatively impact revenue for the next two quarters. The company reported adjusted EBITDA, net income, and EPS below market expectations, with the FY26 EPS forecast revised downward to $2.71, significantly lower than the previous year's $4.42. Additionally, G-III anticipates gross margins to decrease by approximately 300 basis points, as it plans to absorb higher costs without the flexibility to adjust pricing, creating further strain on profitability.