EPISODE · Jun 5, 2026 · 10 MIN
GIII Stock: GIII Apparel + Tommy Beat Q1 FY2026
from Charged Alpha Stock Encyclopedia · host Colton Thomas
G-III Apparel Q1 FY2027 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $34.58 - HOLD - BUY below $28.00 with $22.00 stop - AVOID above $42.00 TRIGGER: Owned brand revenue accelerates above 15% YoY OR FY27 guide raised again at Q2 OR Calvin Klein license extended WINDOW: Through Q3 FY2027 holiday print (December 2026) TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 1 Strong Buy / 3 Buy / 3 Hold / 0 Sell / 0 Strong Sell - MIXED HOLD - Median 12-month price target: $31.00 (range $22 - $40) - Charged Alpha vs consensus: IN LINE THESIS G-III Apparel is executing a strategic pivot from licensed brands (Calvin Klein, Tommy Hilfiger) to owned brands (DKNY, Donna Karan, Karl Lagerfeld Paris) with a fortress balance sheet of $394M cash and only $15M debt providing multi-year runway. Bull lever: At 0.40x EV/Sales, G-III trades at a 50% discount to PVH and 80% discount to Ralph Lauren " the cheapest in the apparel peer set. The $102.7M IEEPA tariff refund validates the company's compliance posture and adds incremental capital for owned-brand investment. Gross margin expansion of 23 points proves the owned brands have real pricing power. Key risk: Calvin Klein and Tommy Hilfiger license expirations creating a multi-year revenue cliff in FY28; owned brand growth at DKNY and Donna Karan must scale meaningfully to fill the gap, and the Q1 GAAP EPS beat was largely a one-time tariff windfall, not recurring earnings. QUALITY CHECK - Management quality grade: B (CEO Morris Goldfarb is the founder and has run G-III since inception in 1956 " multi-decade tenure provides deep industry relationships and strategic continuity. Capital allocation discipline has built a fortress balance sheet ahead of the license transition. However, the heavy reliance on Calvin Klein and Tommy Hilfiger licenses for years was a strategic vulnerability the company is now scrambling to address.) - Earnings quality grade: C+ (Q1 GAAP EPS of $1.50 includes a $102.7M IEEPA tariff refund one-time gain " the recurring adjusted EPS was negative $0.21. This wide GAAP-to-adjusted gap is appropriate disclosure but materially distorts the headline number. FCF was modestly negative reflecting seasonal working capital build. Gross margin expansion of 23 points is real and recurring.) CHAPTERS 0:00 Hook 0:10 S0b_Year 0:52 The Print 1:57 The Trend 2:53 The Segments 3:43 The FCF Bridge 4:43 Guidance & The Narrative Diff 5:45 Peer Dot-Plot 6:37 Management & Earnings Quality 7:39 S8a_Call 8:18 S8b_Call 9:13 S9_Closing 9:48 Outro 9:58 Disclosure KEY METRICS - Q1 FY2027 - Revenue: $0.54B (YoY -8.2%, beat est by +1.3%) - EPS: $-0.21 (vs $-0.30 est, beat +30.0%) - Operating margin: 15.9% - Free cash flow: $-0.01B (-1.7% margin) NARRATIVE DIFF - what changed in management tone - Prior call: "On the Q4 call, management said our owned brand strategy is the core of our future " DKNY and Donna Karan are positioned to drive long-term value as we manage the Calvin Klein and Tommy Hilfiger license transition." - This call: "Our first quarter results reflect strong execution across our owned brand portfolio " DKNY, Donna Karan, and Karl Lagerfeld Paris all delivered healthy growth at full price. The IEEPA tariff refund of $102.7M validates our position and strengthens our balance sheet as we navigate the license transition." - Tone shift: Revenue beat by $7M (1.3%) and adjusted EPS beat by $0.09 (30%). The tariff refund is a one-time windfall that does not change the underlying recurring earnings trajectory, but it does materially strengthen the balance sheet and validate G-III's pursuit of the IEEPA refund process. The real signal is gross margin " 23 points of expansion reflects healthier sell-through of owned brands at full price, not promotional discounting. FY27 guide raise is the credible part of the story. DATA SOURCES - FMP (financialmodelingprep.com) - G-III Apparel Q1 FY2027 press release + earnings call DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in GIII. Do your own research before any investment decision. #GIII #G-IIIApparel #earnings #investing #stocks #ChargedAlpha
What this episode covers
G-III Apparel Q1 FY2027 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $34.58 - HOLD - BUY below $28.00 with $22.00 stop - AVOID above $42.00 TRIGGER: Owned brand revenue accelerates above 15% YoY OR FY27 guide raised again at Q2 OR Calvin Klein license extended WINDOW: Through Q3 FY2027 holiday print (December 2026) TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 1 Strong Buy / 3 Buy / 3 Hold / 0 Sell / 0 Strong Sell - MIXED HOLD - Median 12-month price target: $31.00 (range $22 - $40) - Charged Alpha vs consensus: IN LINE THESIS G-III Apparel is executing a strategic pivot from licensed brands (Calvin Klein, Tommy Hilfiger) to owned brands (DKNY, Donna Karan, Karl Lagerfeld Paris) with a fortress balance sheet of $394M cash and only $15M debt providing multi-year runway. Bull lever: At 0.40x EV/Sales, G-III trades at a 50% discount to PVH and 80% discount to Ralph Lauren " the cheapest in the apparel peer set. The $102.7M IEEPA tariff refund validates the company's compliance posture and adds incremental capital for owned-brand investment. Gross margin expansion of 23 points proves the owned brands have real pricing power. Key risk: Calvin Klein and Tommy Hilfiger license expirations creating a multi-year revenue cliff in FY28; owned brand growth at DKNY and Donna Karan must scale meaningfully to fill the gap, and the Q1 GAAP EPS beat was largely a one-time tariff windfall, not recurring earnings. QUALITY CHECK - Management quality grade: B (CEO Morris Goldfarb is the founder and has run G-III since inception in 1956 " multi-decade tenure provides deep industry relationships and strategic continuity. Capital allocation discipline has built a fortress balance sheet ahead of the license transition. However, the heavy reliance on Calvin Klein and Tommy Hilfiger licenses for years was a strategic vulnerability the company is now scrambling to address.) - Earnings quality grade: C+ (Q1 GAAP EPS of $1.50 includes a $102.7M IEEPA tariff refund one-time gain " the recurring adjusted EPS was negative $0.21. This wide GAAP-to-adjusted gap is appropriate disclosure but materially distorts the headline number. FCF was modestly negative reflecting seasonal working capital build. Gross margin expansion of 23 points is real and recurring.) CHAPTERS 0:00 Hook 0:10 S0b_Year 0:52 The Print 1:57 The Trend 2:53 The Segments 3:43 The FCF Bridge 4:43 Guidance & The Narrative Diff 5:45 Peer Dot-Plot 6:37 Management & Earnings Quality 7:39 S8a_Call 8:18 S8b_Call 9:13 S9_Closing 9:48 Outro 9:58 Disclosure KEY METRICS - Q1 FY2027 - Revenue: $0.54B (YoY -8.2%, beat est by +1.3%) - EPS: $-0.21 (vs $-0.30 est, beat +30.0%) - Operating margin: 15.9% - Free cash flow: $-0.01B (-1.7% margin) NARRATIVE DIFF - what changed in management tone - Prior call: "On the Q4 call, management said our owned brand strategy is the core of our future " DKNY and Donna Karan are positioned to drive long-term value as we manage the Calvin Klein and Tommy Hilfiger license transition." - This call: "Our first quarter results reflect strong execution across our owned brand portfolio " DKNY, Donna Karan, and Karl Lagerfeld Paris all delivered healthy growth at full price. The IEEPA tariff refund of $102.7M validates our position and strengthens our balance sheet as we navigate the license transition." - Tone shift: Revenue beat by $7M (1.3%) and adjusted EPS beat by $0.09 (30%). The tariff refund is a one-time windfall that does not change the underlying recurring earnings trajectory, but it does materially strengthen the balance sheet and validate G-III's pursuit of the IEEPA refund process. The real signal is gross margin " 23 points of expansion reflects healthier sell-through of owned brands at full price, not promotional discounting. FY27 guide raise is the credible part of
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GIII Stock: GIII Apparel + Tommy Beat Q1 FY2026
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