G-III (NASDAQ:GIII) Misses Q4 CY2025 Revenue Estimates, Stock Drops 12.3%

101 finance2026/03/12 11:51

By:101 finance

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Fashion conglomerate G-III (NASDAQ:GIII) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 8.1% year on year to $771.5 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $2.71 billion at the midpoint. Its non-GAAP profit of $0.30 per share was 49% below analysts’ consensus estimates.

Is now the time to buy G-III? Find out in our full research report.

G-III (GIII) Q4 CY2025 Highlights:

Revenue: $771.5 million vs analyst estimates of $792 million (8.1% year-on-year decline, 2.6% miss)
Adjusted EPS: $0.30 vs analyst expectations of $0.59 (49% miss)
Adjusted EPS guidance for the upcoming financial year 2027 is $2.05 at the midpoint, missing analyst estimates by 30%
EBITDA guidance for the upcoming financial year 2027 is $160 million at the midpoint, below analyst estimates of $214.2 million
Operating Margin: -3.8%, down from 8.5% in the same quarter last year
Market Capitalization: $1.25 billion

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “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. For the full year, our go forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year. I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy.”

Company Overview

Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, G-III grew its sales at a weak 7.5% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.

G-III (NASDAQ:GIII) Misses Q4 CY2025 Revenue Estimates, Stock Drops 12.3% image 0

G-III Quarterly Revenue

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. G-III’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.3% annually.

G-III Year-On-Year Revenue Growth

This quarter, G-III missed Wall Street’s estimates and reported a rather uninspiring 8.1% year-on-year revenue decline, generating $771.5 million of revenue.

Looking ahead, sell-side analysts expect revenue to decline by 7% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

G-III’s operating margin has shrunk over the last 12 months and averaged 6.5% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.

G-III Trailing 12-Month Operating Margin (GAAP)

This quarter, G-III generated an operating margin profit margin of negative 3.8%, down 12.3 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

G-III’s EPS grew at 34% compounded annual growth rate over the last five years, higher than its 7.5% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.

G-III Trailing 12-Month EPS (Non-GAAP)

In Q4, G-III reported adjusted EPS of $0.30, down from $1.27 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects G-III’s full-year EPS of $2.64 to grow 14.9%.

Key Takeaways from G-III’s Q4 Results

We struggled to find many positives in these results. Its full-year EBITDA guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 12.3% to $25.93 immediately following the results.

G-III may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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