GIII Stock Forecast & Price Target

G-III Apparel Group demonstrated impressive topline growth of over 30% in North America, largely attributed to robust demand for its lifestyle offerings, leading to margin expansion. The company experienced significant wholesale growth in both Europe and the Middle East, with strong performance in its DKNY brand, particularly in accessories and dresses, which has positively influenced average unit retail prices. While there is expected near-term gross margin pressure due to inventory strategies, the long-term outlook remains positive as owned brands penetration increases and pricing adjustments are made, further supported by a 20% year-over-year growth in its men's apparel segment.

G-III Apparel Group has faced significant challenges as both adjusted EBITDA and net income have fallen below market expectations, largely attributed to an unexpected increase in tariff impacts. The company has revised its EPS forecast for FY26 to $2.71, a decrease from the prior estimate of $2.88 and well below last year's $4.42, reflecting ongoing concerns about reduced order volumes from key licensed brands like Calvin Klein and Tommy Hilfiger. Additionally, G-III's limited flexibility to adjust pricing in light of rising costs is expected to result in a decline of approximately 300 basis points in gross margins for the fiscal year, compounding financial pressure moving forward.