shares G-III clothing (NASDAQ: GIII ) Today is moving lower after the fashion licensing company reported disappointing results in its fourth quarter earnings report.
As a result, the stock was down 10% as of 11:29 am ET.
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In a challenging environment for apparel stocks, G-III has held its ground in recent years, but in the fourth quarter, revenue fell 8.1% to $771.5 million, missing consensus at $792 million. Some were related to the loss of licenses for Tommy Hilfiger and Calvin Klein PVH As the company tries to bring its brands in-house.
Gross profit fell 13% to $285.4 million, indicating that the company was forced to target its merchandise for discretionary spending in a weak environment, and adjusted earnings per share fell from $1.27 to $0.30, which was below consensus of $0.59, although that included $0.30 of debt related to a share-related bank loan.
CEO Maurice Goldfarb said, “The strength and global recognition of our brands, combined with a streamlined operating model and strong balance sheet, enable us to deliver strong performance despite a challenging environment.
Looking ahead to fiscal 2027, the company expects revenue of $2.71 billion, down from $2.96 billion last year, though that includes $470 million in losses from the Calvin Klein and Tommy Hilfiger brands.
On the bottom line, adjusted earnings per share are expected to be $2.00-$2.10, down from $2.61 in fiscal 2026 and well below the $2.93 analyst consensus.
Given this forecast, the sell-off looks understandable, but the business looks stable when you exclude the impact of the loss of the PVH brands.
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