G-III Apparel Surges After Upbeat Q3 and First-Ever Quarterly Dividend Announcement

G-III Apparel Group, Ltd. (NASDAQ: GIII) saw its stock price jump significantly on December 9, 2025, following the company’s third quarter fiscal 2026 earnings release and a series of positive announcements. The apparel manufacturer reported better-than-expected profitability for Q3, raised its full-year earnings guidance, and introduced its first-ever quarterly dividend program.

Shares traded at $31.25 during market hours, up $1.58 or 5.34%, and climbed even higher in pre-market trading to $32.02, representing a 7.92% gain. The strong performance comes as CEO Morris Goldfarb highlighted the strength of the company’s owned brand portfolio and effective tariff mitigation strategies.

Earnings Outperform Despite Lower Sales

G-III Apparel delivered impressive third quarter results for the period ended October 31, 2025, with non-GAAP earnings per share of $1.90, beating analyst estimates by $0.29. However, net sales of $988.6 million represented a 9% decline compared to $1.09 billion in the prior year’s third quarter and missed revenue expectations by $21.35 million. The company reported GAAP net income of $80.6 million, or $1.84 per diluted share, compared to $114.8 million, or $2.55 per diluted share, in last year’s third quarter.

CEO Morris Goldfarb emphasized that gross margins and earnings far exceeded expectations, driven by the strength of the company’s go-forward portfolio, particularly its owned brands including DKNY, Donna Karan, and Karl Lagerfeld.

The company also benefited from a healthy mix of full-price sales and successful mitigation efforts against tariffs. Based on current tariff rates, G-III anticipates the gross impact of tariffs will be approximately $135 million, but has partially offset this through vendor participation, strategic sourcing shifts, and targeted price increases, leaving an unmitigated impact of approximately $65 million.

The company maintained a strong financial position, with total debt decreasing 95% to $10.6 million compared to $224.2 million last year. G-III ended the quarter in a net cash position of $173.5 million compared to a net debt position of $119.5 million in the same period last year. Inventories increased modestly by 3% to $547.1 million, while the company continued its capital allocation strategy with share repurchases of 209,851 shares for $5.4 million in the third quarter.

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Stronger Profit Guidance and New Dividend Program Signal Confidence

G-III Apparel significantly raised its fiscal 2026 profitability outlook while slightly lowering revenue expectations. The company now expects non-GAAP net income between $125.0 million and $130.0 million, up from previous guidance of $113.0 million to $123.0 million, with diluted earnings per share projected at $2.80 to $2.90 versus prior guidance of $2.55 to $2.75.

This compares favorably to the consensus EPS estimate of $2.70. GAAP net income is expected between $121.0 million and $126.0 million, or $2.72 to $2.82 per diluted share. Adjusted EBITDA guidance was raised to $208.0 million to $213.0 million from $198.0 million to $208.0 million previously. Net sales guidance was adjusted to approximately $2.98 billion from the prior expectation of $3.02 billion, reflecting a disciplined view of the current consumer landscape and expected tariff effects.

Despite the revenue revision, the improved profitability outlook demonstrates the company’s operational efficiency and margin management. The tax rate for fiscal 2026 is estimated at 29.5%, with net interest expense expected to be approximately $1.5 million.

In a landmark capital allocation decision, G-III’s Board of Directors approved the company’s first-ever quarterly dividend program. The initial dividend of $0.10 per share will be paid on December 29, 2025, to stockholders of record as of December 15, 2025.

CEO Goldfarb stated that the company’s strong financial profile enables it to return capital directly to stockholders through the dividend program while continuing to pursue strategic growth opportunities. This initiative signals management’s confidence in the business and its ability to generate consistent cash flow going forward.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.