G-III Apparel Group, Ltd. (NASDAQ:GIII) reported fourth-quarter results on Thursday that fell short of analyst expectations and issued a weaker-than-expected outlook for fiscal 2027 as the company exits its licensing agreements with Calvin Klein and Tommy Hilfiger.
The company’s shares declined 12.75% in premarket trading following the announcement.
For the fourth quarter ended January 31, 2026, the apparel manufacturer reported an adjusted loss of $0.30 per share, missing analyst estimates. Revenue fell 8.1% year-over-year to $771.5 million from $839.5 million in the same period a year earlier.
Results for the quarter included $17.5 million in bad debt expense, largely tied to the Saks Global bankruptcy, equivalent to $0.32 per share after tax.
For the full fiscal year 2026, net sales totaled $2.96 billion, representing a 7% decline from $3.18 billion in the prior year.
The company reported adjusted earnings per share of $2.61 for the year, including a $0.30 impact from the Saks Global-related bad debt expense. G-III said the drop in revenue largely reflected the loss of $254 million in sales tied to PVH brands, although its key owned brands recorded mid-single-digit growth.
“Fiscal 2026 was a pivotal year for G-III. The strength and global recognition of our brands, together with a disciplined operating model and strong balance sheet, enabled us to deliver solid performance despite a challenging environment,” said Morris Goldfarb, Chairman and CEO.
Looking ahead to fiscal 2027, G-III expects net sales of about $2.71 billion, down from $2.96 billion in fiscal 2026. The forecast reflects approximately $470 million in lost revenue from Calvin Klein and Tommy Hilfiger products.
The company projects adjusted earnings per share in the range of $2.00 to $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 same quarter last year, and forecasts an adjusted loss per share between -$0.40 and -$0.30.
G-III ended the year with $406.7 million in cash and returned more than $50 million to shareholders through dividends and share buybacks. The company also launched a cost-reduction program targeting $25 million in annual savings, which it expects to realize beginning in fiscal 2028.