Red Flags Detected
- Material Weakness (worsened) — IT control deficiency at KLH subsidiary persists into second year while KLH's revenue contribution grew from 8.2% to 9% of total sales.
- Asset Impairment (worsened) — Asset impairments surged from $8.2M to $48.6M, driven by $40M Saks Global bankruptcy write-down and $5.8M e-commerce retailer investment impairment.
G-III sales fall 7% as tariffs compress margins and Calvin Klein/Tommy Hilfiger licenses expire
Filed March 24, 2026 · Period ending January 31, 2026 · Compared to 10-K Mar 24, 2025 · ~2 min read
Key Changes
-
high
Net sales declined 7% to $2.96B; operating profit fell 63% to $108M (3.7% margin) driven by tariff-driven gross margin compression (140bp decline), $48.6M asset impairments (primarily $40M Saks Global bankruptcy write-down), and accelerating Calvin Klein/Tommy Hilfiger license expirations ($285.8M revenue decline).
MD&A: Operating Results verify on EDGAR → -
high
71.6% of product sourced from China, Vietnam, and Bangladesh—countries hit by April 2025 tariffs. February 2026 Supreme Court ruling invalidated certain 2025 tariffs but refund availability/timing uncertain; new 10% global tariff effective Feb 24, 2026 expires in 150 days unless Congress renews.
MD&A: Tariffs verify on EDGAR → -
high
Owned brands (DKNY, Karl Lagerfeld, Donna Karan) grew to 57% of sales from 52%, but growth slowed sharply: Karl Lagerfeld +$50M (8.6%), DKNY -$25M (-3.7%). Calvin Klein/Tommy Hilfiger now 28% of sales (down from 34%), with $435.6M expiring Dec 31, 2025 and $372.2M Dec 31, 2026.
Business: Brand Portfolio verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
Want to see a complete report first? Today's free report (SMID 10-Q) is open in full — no account needed.
Partner
Trade GIII commission-free
Open an account, get a free stock.
Investing involves risk. Free stock terms apply.
Generated by AI · Jun 11, 2026 4:19 AM