G-III Apparel Group reported a 4 per cent drop in first-quarter revenue to US $ 583.6 million, as the US fashion house bore the brunt of returning its Calvin Klein and Tommy Hilfiger licenses to parent company PVH Corp. The strategic move took a toll on topline performance but was somewhat alleviated by strong growth in the company’s owned brands.
Even though revenue declined, the New York-based company registered a net income rise to US $ 7.8 million, compared with US $ 5.8 million, during the comparable period last year. The profit was fueled by double-digit sales gains from its core brands – DKNY, Karl Lagerfeld and Donna Karan.
Morris Goldfarb, chairman and CEO, said that G-III reported solid earnings that beat the high end of their guidance and this demonstrates both increasing demand for their brand portfolio as well as the sharp execution of their team.
Nevertheless, the company dipped a conservative note on the outlook. G-III pulled its full-year earnings prediction, attributing rising uncertainty around suggested US tariffs and overall macroeconomic instability. It cautioned that if tariffs move ahead as scheduled, they would contribute an estimated US $ 135 million in unmitigated expenses—mainly affecting the second half of the fiscal year.
However, the company reconfirmed its fiscal 2026 net sales outlook and emphasized its preparedness to weather the storm. Goldfarb said that their seasoned leadership team has consistently demonstrated its capacity to navigate sophisticated challenges, pointing out that the company sees today’s disruptions as an opportunity to hone its competitive edge and grow market share.
G-III’s brand stable includes DKNY, Karl Lagerfeld, Donna Karan, G.H. Bass and Vilebrequin, along with licensing rights for more than 20 labels such as Nautica, Halston, BCBG, Converse and various US sports leagues.
