G-III Holds Dividend Steady After Tariff Windfall Lifts Profit
G-III Apparel Group (GIII) declared a quarterly dividend of $0.10 a share, unchanged from the prior period, in a release that carried no new operating results months after a tariff-recovery payment drove first-quarter net income to $66.5 million.
G-III Apparel Group (GIII) declared a quarterly dividend of $0.10 a share on August 20, 2026, payable September 29, matching the payout the apparel and accessories maker set in its prior declaration and holding the rate flat through multiple quarters. The filing contained no new sales or earnings figures, leaving the June 5 report as the most recent look at the business.
That June report showed a business reshaped by a one-time tariff recovery. Net sales for the first quarter of fiscal 2027 fell 8% to $536.0 million from $583.6 million a year earlier, yet the company said results still came in ahead of its own guidance. Gross margin expanded 2,270 basis points to 64.9% from 42.2%, but the bulk of that gain traced to a $102.7 million pretax benefit tied to an IEEPA tariff recovery. Strip that out, and adjusted gross margin still rose 350 basis points to 45.7%.
The tariff benefit ran straight to the bottom line. GAAP net income climbed to $66.5 million, or $1.50 per diluted share, from $7.8 million, or $0.17, a year earlier, with the after-tax tariff recovery contributing $77.9 million, or $1.75 a share. Remove that item, and the picture inverts: non-GAAP earnings per share swung to a loss of $0.21 from a profit of $0.19 in the prior-year quarter. The gap between the GAAP headline and the adjusted result underscores how much of the quarter's profit came from a recovery payment rather than from underlying apparel demand, which continued to soften as revenue declined for a second straight comparison period.
G-III used the beat to raise its GAAP and non-GAAP net income guidance for fiscal 2027 and to issue an initial outlook for the second quarter. Inventories fell 8% to $417.9 million from $456.5 million, a reduction that typically signals tighter buying against softer sales, while cash and equivalents rose to $394.2 million from $257.8 million, giving the company more room to fund its next major commitment.
That commitment centers on Marc Jacobs. G-III signed a definitive agreement in May for a 50/50 joint venture with WHP Global valued at roughly $500 million, expected to close in the fiscal third quarter, and by the June earnings release, management had already folded the deal into its growth narrative for the year ahead. The dividend declaration gives no update on where that transaction stands, but the cash buildup reported in June suggests the balance sheet is being positioned for the close. The next scheduled earnings report will show whether the Marc Jacobs venture has closed on schedule and whether adjusted margins can hold their gains once the tariff recovery cycles out of the comparison.