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

Reuters
Mar 12
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

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Miss

$771.50 mln

$791.99 mln (4 Analysts)

Q4 Adjusted EPS

Miss

$0.30

$0.59 (4 Analysts)

Q4 Net Income

-$31.90 mln

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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