What Happened?
Shares of fashion conglomerate G-III (NASDAQ: GIII) fell 12.1% in the afternoon session after the company reported disappointing fourth-quarter results and provided a weak financial outlook for the upcoming year.
For the quarter, revenue fell 8.1% year on year to $771.5 million, missing analyst estimates. The company's bottom line was hit harder, with adjusted earnings per share of $0.30 coming in 49% below consensus forecasts. Looking ahead, G-III's guidance for the upcoming financial year also failed to impress investors. The company projected full-year adjusted earnings per share of $2.05 at the midpoint, missing analyst estimates by 30%. Furthermore, its full-year EBITDA guidance of $160 million was well below the $214.2 million Wall Street had anticipated, signaling potential demand challenges ahead.
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What Is The Market Telling Us
G-III’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for G-III and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 18.7% on the news that the company reported underwhelming first quarter 2025 results: its EPS guidance for next quarter missed analysts' estimates. Sales dropped by 4%, with the company citing supply chain disruptions and timing issues in several programs that pushed volume into the back half of the year. On the other hand, G-III blew past analysts' EPS expectations, and its full-year revenue guidance slightly exceeded Wall Street's estimates. Still, this quarter was weak.
G-III is down 11.7% since the beginning of the year, and at $26.06 per share, it is trading 18.8% below its 52-week high of $32.07 from December 2025. Investors who bought $1,000 worth of G-III’s shares 5 years ago would now be looking at an investment worth $801.94.
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