G-III Apparel Group, Ltd. (NASDAQ: GIII) reported fourth-quarter results that missed analyst expectations and issued weak fiscal 2027 guidance as the company exits its licensing agreements for Calvin Klein and Tommy Hilfiger products. Shares dropped more than 15% intra-day Thursday.
The apparel manufacturer reported an adjusted loss of $0.30 per share for the quarter ended January 31, 2026, falling short of analyst estimates. Revenue declined 8.1% to $771.5 million from $839.5 million in the prior-year period.
The quarter included $17.5 million in bad-debt expenses tied primarily to the Saks Global bankruptcy, which equated to approximately $0.32 per share after tax.
For fiscal 2026, net sales fell 7% to $2.96 billion compared with $3.18 billion in the prior year. Adjusted earnings per share were $2.61, including a $0.30 per share impact related to the Saks Global bad-debt expense.
The company said the revenue decline reflected the loss of $254 million in sales from PVH brands, although its key owned brands recorded mid-single-digit growth.
Looking ahead, G-III expects fiscal 2027 net sales of approximately $2.71 billion, down from $2.96 billion in fiscal 2026, reflecting $470 million in lost revenue tied to the Calvin Klein and Tommy Hilfiger licensing agreements.
The company forecast adjusted earnings per share between $2.00 and $2.10, with a midpoint of $2.05.
For the first quarter, G-III expects revenue of roughly $530 million compared with $583.6 million in the prior year and projects an adjusted loss of $0.30 to $0.40 per share.
