G-III Apparel Group, Ltd. GIII is successfully transforming its business by prioritizing owned brands, boosting profitability and brand control while reducing dependence on licensed labels. Strong growth from key brands like DKNY and Karl Lagerfeld, strategic digital investments and aggressive international expansion are positioning the company for sustainable, long-term success. Moreover, its focus on innovation, global reach and operational efficiency continues to drive strong momentum into fiscal 2026 and beyond.

G-III's Strategic Shift Toward High-Margin Owned Brands

This Zacks Rank #2 (Buy) company is undergoing a significant transformation, with owned brands now contributing more than 50% of total net sales as of March 13, up sharply from previous years. The company has effectively reduced its dependence on licensed brands like Calvin Klein and Tommy Hilfiger, which now represent just 34% of fiscal 2025 sales compared with more than 50% two years ago. This pivot has strengthened G-III’s profitability, brand ownership and pricing power.

Key brands such as DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin posted more than 20% growth in fiscal 2025, driving solid revenue gains. Licensing royalty income also increased 10% year over year, reaching more than $80 million, further validating the company's owned-brand focus.

GIII Stock Past Three-Month Performance

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Expanding its brand portfolio, G-III launched Donna Karan, Nautica, Halston and Champion outerwear during the year, boosting fourth-quarter revenues by 9.8% year over year to $839.5 million. The Donna Karan relaunch exceeded expectations with strong sell-throughs and high average unit retail prices, expanding its footprint to more than 1,500 points of sale by fiscal year-end, with plans to reach 1,700 by spring 2026.

Looking ahead, international licensing initiatives, particularly for Donna Karan's new fragrance and jewelry lines, are positioned to accelerate growth toward a $1 billion annual sales target. Similarly, Karl Lagerfeld surpassed $580 million in net sales for fiscal 2025, growing more than 20% year over year. G-III expects double-digit growth for DKNY, Karl Lagerfeld and Donna Karan to continue in fiscal 2026, solidifying its leadership in the global fashion market.

Digital Transformation and Omnichannel Growth of GIII

G-III has made strategic investments in digital infrastructure, boosting its omnichannel capabilities and expanding partnerships with Amazon and Zalando to enhance online visibility. Sales from owned-brand digital platforms rose more than 20% in fiscal 2025, reflecting strong consumer adoption and digital strength.

The company is also leveraging AI-driven technologies to streamline operations, enhance supply-chain transparency and optimize digital merchandising, which is driving margin expansion. Its North America retail turnaround significantly improved profitability, reducing losses by half and adding more than $15 million in gains during fiscal 2025.

GIII’s Global Expansion Drives New Growth Avenues

International expansion is a key pillar of G-III’s growth strategy, with only 20% of net sales currently generated outside North America, highlighting substantial untapped potential. A 20% investment in All We Wear Group (“AWWG”), a major European fashion platform operating in 86 countries and generating $650 million in revenues, will further accelerate global brand penetration. AWWG will drive the expansion of DKNY, Donna Karan and Karl Lagerfeld across Spain and Portugal, while G-III will introduce AWWG brands such as Pepe Jeans and Hackett to the North American market.

In Latin America, Karl Lagerfeld’s distributor opened five new stores in fiscal 2025, with six more scheduled for fiscal 2026. Continued expansion across Western Europe and Latin America positions G-III for robust international growth moving forward.

G-III’s Strategic Partnership With ALDO for G.H.BASS

GIII recently announced a seven-year exclusive licensing agreement with ALDO Product Services for G.H.BASS footwear, bags and small leather goods in North America. Set to launch in Spring/Summer 2026, ALDO will oversee design, manufacturing, distribution and e-commerce operations. This collaboration merges G.H.BASS’s heritage craftsmanship with ALDO’s global sourcing and omnichannel expertise to expand the brand’s reach and attract a new generation of consumers.

Is GIII a Value Play Stock?

G-III is currently trading at a low price-to-earnings (P/E) multiple, which is below the average of the Zacks Textile - Apparel industry and Consumer Discretionary sector. With a forward 12-month P/E of 6.13, GIII is priced lower than the industry average of 10.45 and the sector average of 17.64. This makes G-III stock undervalued relative to its industry peers, presenting an attractive opportunity for investors seeking exposure to the sector. The company’s  Value Score of A underscores its appeal as a potential investment. 

Although the company’s shares have lost 20.1% over the past three months, they have outperformed the industry’s decline of 30%.

GIII Looks Attractive From Valuation Standpoint

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Other Stocks to Consider

Some other top-ranked stocks are The Gap, Inc. GAP, Stitch Fix SFIX and Canada Goose GOOS.

The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Gap’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.5%, respectively, from the fiscal 2024 reported levels. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.

Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies a decline of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%.

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