GIII Stock Forecast & Price Target

G-III Apparel Group Ltd has demonstrated a solid financial performance, highlighted by a 4.8% year-over-year increase in inventories and a strong online sales uptick, with traffic rising 150% and average order value (AOV) increasing by over 10%. The company anticipates an improvement in gross margin by approximately 50 basis points entering FY26, driven by a richer mix of higher-margin owned brands, while its cash and cash equivalents rose significantly to $184 million from $105 million year-over-year. Additionally, G-III's robust wholesale operations and strategic licensing business have shown growth, particularly in team sports and international markets, positioning the company favorably for continued expansion.

G-III Apparel Group has reported a significant decline in sales, with total sales in the third quarter down 9.0% year-over-year to $988.6 million, falling short of both the company's guidance and consensus expectations. The company experienced a contraction in gross margin of 120 basis points to 38.6%, alongside operating expenses that deleveraged 240 basis points to 26.8%, indicating escalating cost pressures. Furthermore, adjusted EBITDA, net income, and EPS all missed consensus forecasts, primarily due to larger-than-expected impacts from incurred tariffs, contributing to a negative outlook for the company’s financial performance moving forward.