G-III Apparel Q4 sales miss estimates after exiting Calvin Klein, Tommy Hilfiger

Overview

• U.S. fashion apparel firm's fiscal Q4 sales fell 8%, missing analyst expectations

• Adjusted EPS for fiscal Q4 missed consensus, impacted by Saks Global bankruptcy bad debt expense

• Company launched $25 mln cost savings initiative and returned over $50 mln to shareholders

Outlook

• G-III expects fiscal 2027 net sales of about $2.71 bln, down from $2.96 bln in fiscal 2026

• Company sees fiscal 2027 net income between $88 mln and $92 mln, or EPS of $2.00-$2.10

• First-quarter fiscal 2027 net sales expected to be about $530 mln, with net loss of $(18)-(13) mln

Result Drivers

• PVH BRAND EXITS - Co said loss of Calvin Klein and Tommy Hilfiger sales drove revenue decline

• SAKS GLOBAL BANKRUPTCY - Bad debt expense tied to Saks Global bankruptcy reduced adjusted EPS

• ASSET IMPAIRMENT CHARGES - Non-cash asset impairment charges weighed on Q4 profitability

Company press release: ID:nGNX3Cgdkb

Key Details

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 $34.00, about 15% above its March 11 closing price of $29.57

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

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