GIII Stock Forecast & Price Target

G-III Apparel Group demonstrated a strong performance with over 30% topline growth in North America, primarily driven by favorable consumer response to its lifestyle offerings, which has also contributed to margin expansion. The company reported notable international wholesale growth, particularly in Europe and the Middle East for its DKNY brand, complemented by significant increases in outerwear and accessory sales, with average unit retail prices exceeding $500. While there is anticipated gross margin pressure in the short term, G-III Apparel Group is well-positioned for improved profitability through an increased penetration of owned brands, planned pricing increases, and an eventual normalization of gross margins as licenses are exited.

G-III Apparel Group has faced challenges in its financial performance, evidenced by adjusted EBITDA, net income, and EPS that fell below market expectations due to higher-than-anticipated tariff impacts. For fiscal year 2026, the company's projected EPS has been revised downward to $2.71, a significant decrease from both last year's $4.42 and the previous consensus of $2.90. Additionally, with limited flexibility to adjust pricing amidst increased costs, G-III anticipates a decline of approximately 300 basis points in gross margins for the fiscal year, reflecting the cautious approach taken by retailers and the adverse effects on key brands like Calvin Klein and Tommy Hilfiger.