GIII Stock Forecast & Price Target

G-III Apparel Group has demonstrated strong financial performance, with over 30% topline growth in North America, driven by robust demand for its lifestyle offerings, which has also led to margin expansion. The company's wholesale operations are flourishing internationally, particularly in Europe and the Middle East, with significant growth reported in categories such as jeans and accessories. Additionally, there is notable traction in high average unit retail prices for accessories, further supporting G-III's positive financial trajectory amidst planned tariff-related expenses.

G-III Apparel Group reported a disappointing financial performance, with adjusted EBITDA, net income, and EPS falling short of consensus expectations, partly due to a larger-than-anticipated incremental tariff impact. The company's sales forecast indicates a projected decline of 6.9% year-over-year, with significant pressure on operating margins expected to drop 520 basis points to 10.2%, alongside a gross margin rate decrease of over 400 basis points. Additionally, a substantial reduction in open-to-buys for key licensed brands like Calvin Klein and Tommy Hilfiger suggests weakening demand, which may further exacerbate the company's financial challenges.