Why Is G-III APPAREL GROUP (GIII) Stock Down Today?

GIII stock fell 11.50% to $28.47 on September 2, 2026, driven by a mixed earnings report that included a raised non-GAAP EPS outlook but also a downbeat guidance for future sales and profits due to key license expirations. The company reported second-quarter fiscal 2027 results, with higher net income despite declining revenue. The stock's sharp decline came as investors weighed the impact of the announced expiration of major licensing agreements, including those for Calvin Klein and Tommy Hilfiger, which are expected to create a $460 million sales hole.

What Happened

G-III Apparel Group released its Q2 2027 earnings on September 2, 2026, reporting a net income increase amid a 7.8% year-to-date revenue decline. The company announced the completion of the Marc Jacobs acquisition and raised its non-GAAP EPS guidance for FY2027 to $2.20-$2.30. However, the company also outlined a downbeat outlook for future sales and profit due to the expiration of key licensing agreements. These expirations are expected to significantly impact the company's revenue and margins in the coming quarters. Additionally, G-III guided for Q3 GAAP EPS of $1.35-$1.45, below the $1.75 estimate, and projected Q3 sales of $870 million, below the $899.4 million estimate.

The SEC 8-K filing on the same day detailed the completion of the Marc Jacobs acquisition and provided results of operations and financial condition. The stock's decline followed the earnings call, as the market reacted to the combination of a strategic brand shift and the anticipated revenue shortfall from license expirations.

What The Data Shows

GIII stock closed at $28.47, down from its 52-week high of $37.54. The stock has printed 45 fresh 52-week lows on the day of the decline. The company's fundamentals show a market cap of $1.4 billion, a P/E ratio of 11.3, and a net margin of 4.3%. Revenue has declined 7.8% in the trailing twelve months. The stock has a beta of 1.29, indicating higher volatility than the market. Volume was elevated, though no unusual options activity was reported. Congressional trades show one sell transaction in the last 90 days, with no recent insider transactions disclosed.

What To Watch

The company's Q3 performance and ability to offset the impact of license expirations will be critical in the coming months. Investors should monitor the company's progress with the Marc Jacobs brand integration and its ability to maintain or grow margins amid the expected revenue headwinds.