G-III Apparel Group, Ltd. Q4 FY2026 earnings call

• Fiscal 2026 was pivotal, teams delivered results despite tough environment. • Accelerated portfolio transformation, unlocked growth opportunities. • Key owned brands like Donna Karan, Karl Lagerfeld, DKNY, Vilebrequin showed strong performance. • Focus on brand building, direct-to-consumer, international expansion, category expansion through licensing. • Enhancing omni-channel, on track to return North American retail segment to profitability in fiscal 2027. • Investing in infrastructure, technology, talent, marketing. • Identified $25 million of cost savings across supply chain, etc., expected to achieve in fiscal 2028.

Fourth quarter net sales were $771 million, full year net sales were $2.96 billion. Fourth quarter gross margins were 37%, full year gross margins were 39.4%. Owned brands like Donna Karan delivered ~40% growth in fiscal 2026, Karl Lagerfeld grew high single digits, DKNY had net sales of ~$650 million and ~$2.4 billion in global retail sales, Vilebrequin had low single-digit sales growth. Licensed brands generated mid-single-digit growth excluding exited businesses. Wholesale segment net sales were $737 million in Q4 and $2.87 billion full year, retail segment net sales were $63 million in Q4 and $186 million full year.

• For fiscal 2027, expect net sales of approximately $2.71 billion, down 8% from prior year. • Non-GAAP net income expected to be between $88 million and $92 million, or between $2 and $2.10 per diluted share. • Full year adjusted EBITDA expected to be between $158 million and $162 million. • First quarter of fiscal 2027 expected net sales ~$530 million, net loss between $13 million and $18 million or $0.30 - $0.40 per share. • Expect gross margin percentage increase of approximately 150 basis points, up to 300 basis points for the year. • SG&A expense deleverage due to newer businesses scaling and marketing spend, with largest deleverage in first quarter.

Q: On visibility of own brands, inventory levels, order books and marketing investments, A: Our own brands are strong, comfortable with their growth, order books anticipate growth, inventory in line with conscious effort to change distribution to more full price business.

Q: Update on Converse launch, A: Took on Converse, building globally, guided by licensor Nike, new accounts opening, brand has appetite but hard to tell where it goes if Nike supports.

Q: Prioritizing acquisitions vs new licensing opportunities, A: Looking for amazing acquisitions and licenses, balance sheet supports both.

Q: Which category expansion is furthest along in revenue contribution, A: Karl Lagerfeld hospitality and DKNY consumer driven are furthest.

Q: Size of Donna Karan business and breakdown of go-forward growth, A: Donna Karan is scalable, bigger and further along in 18 months than Calvin Klein; go-forward high single digit growth includes key owned brands, other owned brands and licensed portfolio.

Q: Commentary on gross margin and SG&A dollar growth, A: Gross margin expected to expand 300 basis points, SG&A expansion due to maintaining talent pool, investing in infrastructure and technology, with cost savings initiatives rolling in fiscal 2028