G-III Guides Q3 Well Below Estimates as License Exit Carves $460M Sales Hole
GIII sits 16% above its 52-week low of $24.61 on elevated volume (2.1× avg).
Summary
G-III's Q2 beat on EPS ($0.26 vs $0.19) but revenue missed ($554M vs $568M) and, more importantly, Q3 guidance came in well below consensus: adjusted EPS of $1.35-$1.45 vs $1.75 expected and sales of ~$870M vs $899M. The company quantified the Calvin Klein/Tommy Hilfiger exit as a $460M FY27 sales hit, with the transition weighing most heavily on Q3. Full-year adjusted EPS was raised to $2.20-$2.30 from $2.15-$2.25, but that was already reflected in the earlier report. Shares fell 9.79% to $29.02 on the guidance miss. The Marc Jacobs acquisition, completed yesterday, is expected to be slightly dilutive in FY27 before turning accretive, and management will include it in formal guidance in December.
At the time of this announcement, GIII was trading at $28.46 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $24.61 to $37.54. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.