G-III Apparel Q4 Net Falls After $62.5M Saks Bankruptcy Charges
G-III Apparel reported fourth-quarter net income of $31.9 million on $771.5 million sales, down 8.1%, after $17.5 million in bad debt and $45 million in impairments from Saks Global bankruptcy. It forecasts 2026 sales down 8% to $2.71 billion on PVH license wind-down, plans $25 million savings and $2.00–$2.10 EPS.
1. Saks Bankruptcy Impact
G-III recorded $17.5 million in bad debt and $45 million in impairment charges due to Saks Global bankruptcy, cutting quarterly net income to $31.9 million from $48.8 million and sales to $771.5 million, down 8.1% year-over-year.
2. Brand Growth and Distribution
The company highlighted 40% growth and strong profitability at relaunched Donna Karan across 1,900 North American locations, and high-single-digit gains for Karl Lagerfeld with 3,000 regional points of distribution.
3. 2026 Outlook and Cost Reduction
For fiscal 2026, G-III anticipates an 8% sales decline to $2.71 billion driven by the phase-out of $470 million in PVH licenses, forecasts diluted EPS of $2.00–$2.10, and plans $25 million in run-rate savings through supply chain and structural cost cuts.