G-III Apparel Group, Ltd. (NASDAQ: GIII) shares began the last day of the trading week in the plus column, on reporting results for the first quarter of fiscal year 2027, ended April 30, 2026.
Net sales for the first quarter decreased 8% to $536.0 million compared to $583.6 million in the prior year’s quarter.
Gross margin increased 2,270 basis points to 64.9%, compared to 42.2% in the first quarter of last year. This increase includes a $102.7 million pre-tax benefit related to the expected recovery of previously incurred tariffs, imposed under the International Emergency Economic Powers Act on inventory sold in the prior year. Excluding this benefit, adjusted gross margin increased 350 basis points to 45.7% from 42.2%.
Net income for the quarter was $66.5 million, or $1.50 per diluted share, compared to $7.8 million, or $0.17 per diluted share, in the same period last year.
CEO Morris Goldfarb said, “I am very pleased with our first quarter results, which demonstrate the G-III team’s ability to execute in a dynamic environment. The quarter was better than expected with both our net sales and earnings coming in ahead of guidance. Our go-forward portfolio saw continued momentum and healthy full-price selling, which contributed to meaningful gross margin expansion versus the prior year. Based on our strong first quarter results, we are raising our earnings guidance for fiscal 2027.”
GIII shares soared $2.40, or 7.5%, to $34.44.
