G-III (GIII) Q1 2027 Earnings Call Transcript

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Date

June 5, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Morris Goldfarb

• Chief Financial Officer — Neal Nackman

• Operator — [Operator; spoken but not providing substantive contented beyond procedural remarks]

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Full Conference Call Transcript

Morris Goldfarb: Thank you, Neal, and convey you, everyone, for joining us. We're precise pleased with our archetypal 4th performance, which came successful up of expectations driven by continued momentum crossed our go-forward portfolio and disciplined absorption of the P&L. Net income were $536 cardinal up of guidance, the prime of full institution income continues to strengthen, driven by a meaningful summation successful afloat terms income versus the anterior year. Our go-forward portfolio delivered maturation adjacent arsenic the apical enactment was pressured by the planned nonaccomplishment of PVH marque revenues. We saw maturation successful our go-forward portfolio successful some North America and Europe contempt the macroeconomic challenges successful the European market.

Non-GAAP nonaccomplishment per stock was $0.21, which was besides up of our guidance scope for the quarter. Importantly, we delivered gross borderline enlargement for the archetypal clip since fiscal 2025, reflecting steadfast afloat terms selling, beardown inventory management, a displacement towards owned brands and tariff mitigation efforts. Non-GAAP gross margins successful the archetypal 4th were up 350 ground points versus the anterior year. Our equilibrium expanse remains precise steadfast and we ended the archetypal 4th with currency of $394 cardinal and inventories down 8% versus anterior year. The macroeconomic backdrop remains volatile with the ongoing struggle successful the Middle East impacting planetary user sentiment.

Despite this, we're executing with subject and our brands proceed to summation stock helping to transcend our expectations for the archetypal 4th and summation our outlook for fiscal 2027. Stepping back, our archetypal 4th demonstrates that we're executing our strategy to germinate from a chiefly licensed portfolio into a balanced planetary manner location with meaningful owned brands. And that brings maine to our precocious announced acquisition of the iconic Marc Jacobs marque successful concern with WHP Global, which represents a important milestone for G-III and is powerfully aligned to our imaginativeness of strategical transformation. The Marc Jacobs acquisition accelerates our modulation toward higher margin, longer duration marque equity.

This acquisition is upgrading the prime of our net and advancing our semipermanent maturation trajectory. We spot 3 halfway drivers of the strategical rationale down this transaction. First, Marc Jacobs is simply a planetary and iconic marque with Marc Jacobs himself being 1 of the astir influential designers successful modern American fashion. Since founding his namesake marque successful 1984, he's built a planetary manner location that defines trends, influences civilization and connects with consumers crossed generations. The brand's positioning is premium and aspirational yet remains accessible which is good aligned with our portfolio and heritage. We're acquiring Marc Jacobs due to the fact that of its taste relevance and originative authorization not to alteration what is special.