GIII Stock Forecast & Price Target

G-III Apparel Group reported a positive outlook due to a notable increase in online sales, with traffic rising by 150% and average order value increasing by over 10%, accompanied by a robust performance from its key brands. The company also demonstrated financial strength by ending the third quarter with $184 million in cash and cash equivalents, an increase from $105 million the prior year, while entering FY26 with expectations of improved gross margins driven by a higher mix of owned brands. Additionally, ongoing growth in the licensing business, particularly in team sports, along with strong international performance, further supports the optimistic outlook for G-III Apparel Group.

G-III Apparel Group reported a significant year-over-year sales decline of 9.0%, with total sales reaching $988.6 million, which was below its guidance and consensus expectations. The company's operating margin decreased by 360 basis points to 11.8%, and its gross margin contracted by 120 basis points to 38.6%, indicating pressure on profitability amidst rising operating costs. Additionally, G-III's adjusted EBITDA, net income, and earnings per share all fell short of consensus estimates, primarily affected by unexpected tariff impacts, raising concerns about its financial outlook for the foreseeable future.