GIII Stock Forecast & Price Target

G-III Apparel Group has demonstrated a robust financial performance, highlighted by a 4.8% year-over-year increase in total inventories and improved gross margins anticipated to rise by approximately 50 basis points entering FY26, facilitated by a more favorable mix of higher-margin owned brands. The company has also experienced significant growth in online sales, with a 150% increase in traffic and a notable rise in repeat customers, indicating strong brand loyalty and demand for its products. Furthermore, G-III's financial position has strengthened, ending the third quarter with $184 million in cash and cash equivalents, a substantial increase from $105 million in the prior year, underscoring its solid cash flow and operational efficiencies.

G-III Apparel Group experienced a significant decline in total sales, with a 9.0% year-over-year drop in the third quarter, amounting to $988.6 million, which fell short of both the company's guidance and consensus expectations. Furthermore, the operating margin decreased by 360 basis points to 11.8%, while gross margins contracted 120 basis points to 38.6%, indicating pressure from increasing operating expenses and tariff impacts. Looking forward, gross margin is anticipated to decline by approximately 200 basis points for fiscal year 2026, exacerbating concerns regarding overall profitability.