Shares of fashion conglomerate G-III (NASDAQ:GIII) fell 9.2% in the afternoon session after The company reported second-quarter revenue that missed Wall Street's expectations and issued soft sales guidance for the upcoming quarter. According to the company's press release, G-III reported second-quarter revenue of $554.1 million, down 9.6% year on year, and guided for next-quarter revenue of $870 million. The release also said the company reconfirmed its full-year revenue forecast of $2.71 billion at the midpoint and raised its full-year adjusted earnings per share outlook to $2.25. The quarterly sales result and next-quarter guidance both fell short of Wall Street's estimates, overshadowing profitability gains. Non-GAAP earnings per share reached $0.26, topping analyst projections of $0.23, but adjusted EBITDA of $20.23 million missed expectations of $23.1 million. Despite management raising its full-year adjusted earnings guidance, investors remained focused on top-line pressures and weaker near-term demand.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy G-III? Access our full analysis report here, it's free.
G-III's shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 12.1% on the news that 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.
G-III is flat since the beginning of the year, and at $29.22 per share, it is trading 20.6% below its 52-week high of $36.81 from July 2026. Investors who bought $1,000 worth of G-III's shares 5 years ago would now be looking at only $893.58.
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