G-III (NASDAQ:GIII) Falls Short of Q4 CY2025 Revenue Expectations, Shares Decline by 12.3%

G-III (NASDAQ:GIII) Q4 CY2025 Earnings: Revenue and Profit Miss Expectations

G-III, a major player in the fashion industry, reported fourth-quarter revenue of $771.5 million for CY2025, reflecting an 8.1% decrease compared to the same period last year and falling short of Wall Street’s forecasts. Despite this, the company’s full-year revenue outlook, with a midpoint of $2.71 billion, was largely in line with analyst predictions. Adjusted earnings per share came in at $0.30, which was 49% below consensus estimates.

Curious whether G-III is a good investment at this point?

Highlights from G-III’s Q4 CY2025 Report

• Revenue: $771.5 million, missing analyst expectations of $792 million (down 8.1% year-over-year, 2.6% below forecast)
• Adjusted EPS: $0.30, compared to the expected $0.59 (49% below forecast)
• Adjusted EPS guidance for FY2027: $2.05 at the midpoint, which is 30% lower than analyst projections
• EBITDA guidance for FY2027: $160 million at the midpoint, below the anticipated $214.2 million
• Operating Margin: -3.8%, a significant drop from 8.5% in the prior year’s quarter
• Market Cap: $1.25 billion

Leadership Commentary

Morris Goldfarb, Chairman and CEO of G-III, described fiscal 2026 as a transformative period for the company. He highlighted the strength and global recognition of G-III’s brands, disciplined operations, and a solid balance sheet as key factors in delivering resilient performance despite a challenging market. Goldfarb noted that the company’s core brands drove higher-quality revenue, improved full-price sales, and increased international relevance. He expressed pride in the team’s achievements and the progress made toward long-term strategic goals.

About G-III

G-III began as a small leather goods company and has grown into a diversified fashion and apparel group with a broad range of brands under its umbrella.

Revenue Trends

Consistent revenue growth is often a sign of a strong business. While any company can have a good year, sustained expansion over time is a hallmark of industry leaders. Over the past five years, G-III’s annualized sales growth was a modest 7.5%, which falls short of the typical benchmark for consumer discretionary companies and sets a challenging foundation for further analysis.

At StockStory, we prioritize long-term growth, but it’s important to recognize that some companies can benefit from new trends or products. G-III experienced growth in the past, but over the last two years, its revenue declined at an average annual rate of 2.3%.

In the latest quarter, G-III’s revenue dropped 8.1% year-over-year to $771.5 million, missing analyst expectations and signaling ongoing challenges.

Future Outlook

Looking ahead, analysts anticipate G-III’s revenue will decrease by 7% over the next year, a sharper decline than seen in the previous two years. This suggests the company may face continued headwinds in demand for its products and services.

Profitability: Operating Margin

Operating margin is a key indicator of a company’s profitability, reflecting earnings before taxes and interest. Over the past two years, G-III’s average operating margin was 6.5%, which is relatively weak for a consumer discretionary firm. This suggests the company struggled to offset rising operating costs through higher prices.

In the most recent quarter, G-III’s operating margin fell to -3.8%, a decline of 12.3 percentage points from the prior year. This drop indicates that expenses increased faster than revenue, reducing efficiency.

Earnings Per Share (EPS)

Tracking long-term changes in EPS helps evaluate whether a company’s growth is translating into profitability. Over the past five years, G-III’s EPS grew at a 34% annualized rate, outpacing its revenue growth. However, this improvement in EPS did not coincide with better operating margins, which limits the significance of this growth.

For Q4, adjusted EPS was $0.30, down from $1.27 a year earlier and below analyst expectations. Still, Wall Street projects G-III’s full-year EPS will rise 14.9% to $2.64 over the next 12 months.

Summary: What Do G-III’s Q4 Results Mean?

There were few bright spots in G-III’s latest report. Both EBITDA and EPS guidance fell short of expectations, and the company’s shares dropped 12.3% to $25.93 following the announcement. While the quarter was disappointing, investors should focus on the company’s long-term fundamentals and valuation when considering whether to buy the stock.

Want a deeper dive into G-III’s prospects?

Bonus: The Overlooked $21 AI Stock

While many investors are focused on companies building AI technology, one lesser-known firm is already leveraging AI to generate significant profits—and it’s flying under Wall Street’s radar. This company processes a trillion consumer signals each month using AI and trades at a valuation far below its peers. The current price gap is unlikely to last as institutional investors take notice.