Fashion conglomerate G-III (NASDAQ:GIII) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 9% year on year to $988.6 million. The company’s full-year revenue guidance of $2.98 billion at the midpoint came in 1.3% below analysts’ estimates. Its non-GAAP profit of $1.90 per share was 17.9% above analysts’ consensus estimates.
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G-III (GIII) Q3 CY2025 Highlights:
- Revenue: $988.6 million vs analyst estimates of $1.01 billion (9% year-on-year decline, 2.3% miss)
- Adjusted EPS: $1.90 vs analyst estimates of $1.61 (17.9% beat)
- Adjusted EBITDA: $124.9 million vs analyst estimates of $111 million (12.6% margin, 12.5% beat)
- The company dropped its revenue guidance for the full year to $2.98 billion at the midpoint from $3.02 billion, a 1.3% decrease
- Management raised its full-year Adjusted EPS guidance to $2.85 at the midpoint, a 7.5% increase
- EBITDA guidance for the full year is $210.5 million at the midpoint, above analyst estimates of $203.7 million
- Operating Margin: 11.4%, down from 15.3% in the same quarter last year
- Market Capitalization: $1.25 billion
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We delivered a strong third quarter with gross margins and earnings far exceeding our expectations. This was driven by the strength of our go-forward portfolio, particularly our owned brands, as well as a healthy mix of full-price sales and our mitigation efforts against tariffs. I am pleased with how our brands are resonating with consumers and encouraged by the solid demand we have seen throughout the holiday season to date.”
Company Overview
Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, G-III’s sales grew at a weak 5.8% compounded annual growth rate over the last five years. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. G-III’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.6% annually. 
This quarter, G-III missed Wall Street’s estimates and reported a rather uninspiring 9% year-on-year revenue decline, generating $988.6 million of revenue.
Looking ahead, sell-side analysts expect revenue to decline by 2.8% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and implies its newer products and services will not lead to better top-line performance yet.
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Operating Margin
G-III’s operating margin has shrunk over the last 12 months and averaged 7.8% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, G-III generated an operating margin profit margin of 11.4%, down 3.9 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
G-III’s EPS grew at a decent 32.3% compounded annual growth rate over the last five years, higher than its 5.8% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.
In Q3, G-III reported adjusted EPS of $1.90, down from $2.59 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects G-III’s full-year EPS of $3.61 to shrink by 26%.
Key Takeaways from G-III’s Q3 Results
It was good to see G-III beat analysts’ EPS expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock traded up 10.3% to $32.72 immediately after reporting.
Big picture, is G-III a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.