Fashion conglomerate G-III (NASDAQ: GIII) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 8.1% year on year to $771.5 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $2.71 billion at the midpoint. Its non-GAAP profit of $0.30 per share was 49% below analysts’ consensus estimates.

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Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Fiscal 2026 was a pivotal year for G-III. The strength and global recognition of our brands, together with a disciplined operating model and strong balance sheet, enabled us to deliver solid performance despite a challenging environment. For the full year, our go forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year. I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy.”

Company Overview

Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, G-III grew its sales at a weak 7.5% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. G-III’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.3% annually.

This quarter, G-III missed Wall Street’s estimates and reported a rather uninspiring 8.1% year-on-year revenue decline, generating $771.5 million of revenue.

Looking ahead, sell-side analysts expect revenue to decline by 7% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

G-III’s operating margin has shrunk over the last 12 months and averaged 6.5% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.

This quarter, G-III generated an operating margin profit margin of negative 3.8%, down 12.3 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

G-III’s EPS grew at 34% compounded annual growth rate over the last five years, higher than its 7.5% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.

In Q4, G-III reported adjusted EPS of $0.30, down from $1.27 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects G-III’s full-year EPS of $2.64 to grow 14.9%.

Key Takeaways from G-III’s Q4 Results

We struggled to find many positives in these results. Its full-year EBITDA guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 12.3% to $25.93 immediately following the results.

G-III’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).