Slides
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Earnings Presentation September 2026 1
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Q2 FY27 Earnings
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*See reconciliation of GAAP to Non-GAAP results in appendix “We made good progress in the second quarter, with earnings exceeding our guidance, driven by solid execution, significant gross margin expansion and disciplined expense management. Our go-forward portfolio saw continued momentum, growing high-single-digits in the quarter, with healthy full-price selling and strong sell-throughs. We remain comfortable with our fiscal 2027 outlook and are reiterating our guidance, excluding Marc Jacobs.” Morris Goldfarb, Chairman & CEO $554M TOTAL SALES vs. $613M LY 45.2% GROSS MARGIN vs. 40.8% LY $11.5M NON-GAAP NET INCOME* vs. $11.2M LY $0.26 NON-GAAP EPS* vs. $0.25 LY $531M WHOLESALE SALES vs. $589M LY $40M RETAIL SALES vs. $41M LY 4 Q2 FY27 RESULTS
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*See reconciliation of GAAP to Non-GAAP results in appendix 5 2025 Net Sales $613,266$554,093 Non-GAAP Net Income (loss)* $11,180$11,493 Non-GAAP Diluted EPS $0.25$0.26 Gross Profit $250,471$250,381 2026($ in thousands, except for per share data) SG&A Expenses $226,845$231,354 Three Months Ended July 31,(Unaudited) • Net sales for the first quarter decreased 10% to $554 million compared to $613 million in the prior year’s quarter. • Gross margin increased to 45.2% in the first quarter compared to 40.8% last year. • SG&A expenses in the first quarter were $231 million, compared to $227 million last year. • Non-GAAP net income for the first quarter was $11.5 million, or $0.26 per diluted share, compared to net income of $11.2 million, or $0.25 per diluted share last year. Non-GAAP EPS was ahead of our guidance range of $0.15 to $0.25. Q2 FY27 P&L OVERVIEW
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• Cash and cash equivalents were $529 million at the end of the second quarter compared to $302 million last year, with total availability of approximately $1 billion. • Inventories decreased 13% compared to last year. 6 Cash & Cash Equivalents $301,778$529,190 Working Capital $812,675$984,231 Inventories $639,756$555,024 Total Assets $2,690,981$2,751,847 Operating Lease Liabilities $280,295$ 333,004 Total Stockholders’ Equity $1,708,521$1,819,114 Debt $15,481$7,835 ($ in thousands) Net Cash (Debt) $286,297$521,355 As of July 31, 20252026 (Unaudited) Q2 FY27 BALANCE SHEET
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Q2 FY 2027 Brand Highlights
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Q2 FY27 DONNA KARAN 8 • The brand delivered more than 45% growth in the second quarter, driven by solid consumer demand, healthy full-price selling and its aspirational positioning. • Lifestyle momentum remains strong across categories, with handbags delivering strong double-digit growth and footwear distribution expanding for Fall. • Strategic marketing initiatives continue to strengthen brand desirability and broaden awareness, including the launch of Kendall Jenner as the face of the Fall 2026 global campaign. • The brand remains in the early stages of its growth opportunity, with significant potential across categories, channels and geographies.
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9 Q2 FY27 DKNY • The brand continued to build momentum in North America, with healthy full-price sell-throughs and continued strength across direct-to-consumer channels. DKNY.com sales grew in the mid-20% range, driven by higher conversion and AURs. • Overall strength continues to be supported by product newness, healthy full-price selling and targeted marketing investments. • The brand remains focused on expanding its global reach through continued growth in direct- to-consumer and international markets. • The Fall 2026 campaign, featuring Iris Law and Amelia Gray, builds on the success of the Hailey Bieber partnership and is designed to broaden DKNY’s reach with younger consumers. UPDATE PHOTO
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10 Q2 FY27 KARL LAGERFELDUPDATE PHOTO • The brand delivered strong growth in North America, led by wholesale, while European sales were impacted by a challenging consumer environment. • Karl Lagerfeld Jeans continued to outperform and remains an important growth engine, particularly with younger consumers. • We continue to expand Karl Lagerfeld as a global lifestyle brand through licensing and hospitality. The first-ever KARL LAGERFELD Café opened in Amsterdam, while Karl Lagerfeld Residences in Lisbon launched in June. • Looking ahead, we expect strong marketing visibility in the second half, supported by the third season of our partnership with Paris Hilton and the launch of the new global “Not Karl” campaign.
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Net Sales $2.71B Non-GAAP Net Income* $97M- $101M Non-GAAP Diluted EPS* $2.20 - $2.30 Adjusted EBITDA $174M - $178M Net Interest Income (GAAP) ~$8.0M Capital Expenditures ~$40M GAAP Net Income $181M - $185M GAAP Diluted EPS $4.10 - $4.20 GAAP Tax Rate Non-GAAP Tax Rate ~25.2% *See reconciliation of GAAP to Non-GAAP results in appendix 11 “Our second quarter results reflect strong execution across the organization, with earnings exceeding our guidance, driven by substantial gross margin expansion. Our go- forward portfolio grew at a high-single-digit rate during the quarter, reinforcing our confidence in the power of our brands and business model.” Morris Goldfarb, Chairman & CEO FY 2027 OUTLOOK Fiscal 2027Guidance Issued on 9/2/26 ~32.2%
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“We are making significant progress transforming G-III. We have a powerful portfolio of globally recognized brands, strong merchant and sourcing capabilities, deep retail relationships and a very healthy balance sheet. I believe these strengths position G-III to deliver significant value for our shareholders. ” MORRIS GOLDFARB, CHAIRMAN & CEO
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Appendix
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Q2 FY27 GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) ($ in thousands, except per share amounts) 14 GAAP Net Income to Non-GAAP Net Income (Loss) Actual Actual Forecasted Forecasted Q1 Q2 Q3 Full Year GAAP net income $ 66,534 $ 20,213 $ 59,000 - 64,000 $ 181,000 - 185,000 IEEPA tariff refund (102,681) (122) - (102,803) Interest income on IEEPA tariff refund - (3,085) - (3,085) Expenses related to Marc Jacobs acquisition 3,400 4,032 - 7,432 Income tax impact of non-GAAP adjustments 24,007 (211) - 23,790 Tax benefit from release of valuation allowance - (9,334) - (9,334) Non-GAAP net income (loss) $ (8,740) $ 11,493 $ 59,000 - 64,000 $ 97,000 - 101,000 GAAP Net Income Per Diluted Share to Non-GAAP Net Income (Loss) Per Share Actual Actual Forecasted Forecasted Q1 Q2 Q3 Full Year GAAP net income per diluted share $ 1.50 $ 0.46 $ 1.35 - 1.45 $ 4.10 - 4.20 Adjustment from GAAP diluted shares to non-GAAP diluted shares (1) 0.08 - - - IEEPA tariff refund (2.43) - - (2.33) Interest income on IEEPA tariff refund - (0.07) - (0.07) Expenses related to Marc Jacobs acquisition 0.08 0.09 - 0.17 Income tax impact of non-GAAP adjustments 0.56 - - 0.54 Tax benefit from release of valuation allowance - (0.22) - (0.21) Non-GAAP diluted net income (loss) per common share $ (0.21) $ 0.26 $ 1.35 - 1.45 $ 2.20 - 2.30 For the Year Ended January 31, 2027 For the Year Ended January 31, 2027 (1) Represents adjustment for shares used to calculate diluted earnings per share. Due to our recording GAAP net income for the first quarter of fiscal 2027, GAAP diluted net income per share includes the impact of potential dilutive common shares. When applying non-GAAP exclusions, results move from a net income position to a net loss wherein net loss per share excludes the impact of potential dilutive common shares.
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Thank You