G-III reported a net income per diluted share of $1.84 and Non-GAAP net income per diluted share of $1.90 for the third quarter, exceeding guidance.
Net sales for the third quarter reached $988.6 million.
The company introduced its first-ever quarterly dividend program, with an initial dividend of $0.10 per share.
Financial Performance
Net income for the third quarter was $80.6 million, or $1.84 per diluted share, compared to $114.8 million, or $2.55 per diluted share, in the previous year's third quarter.
Balance Sheet Strength
Inventories increased by 3% to $547.1 million while total debt decreased significantly to $10.6 million, leaving the company in a net cash position of $173.5 million.
Capital Allocation Strategy
The company repurchased shares worth $5.4 million in the third quarter and declared a quarterly cash dividend of $0.10 per share, marking the initiation of their dividend program.
- G-III exceeded earnings expectations for the quarter, driven by strong gross margins and earnings.
- The company's effective mitigation efforts against tariffs and a favorable sales mix contributed to the outperformance.
- The announcement of the quarterly dividend program reflects the company's confidence in its financial strength and commitment to returning value to shareholders.
G-III's solid third-quarter performance and strategic financial decisions position the company for continued success in fiscal 2026 despite market uncertainties. The introduction of the dividend program signals confidence in ongoing growth and shareholder value.