Red Flags Detected
- Material Weakness (worsened) — Material weakness in IT controls at KLH subsidiary persists for another year, with KLH's share of total sales increasing from 8.2% to 9%, expanding the scope of affected operations.
G-III posts 64.9% gross margin on $102.7M tariff refund; sales fall 8.2% as CK/TH expire
Filed June 8, 2026 · Period ending April 30, 2026 · Compared to 10-Q Jun 6, 2025 · ~2 min read
Key Changes
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Q1 FY2027 gross margin surged to 64.9% from 42.2% due to $102.7M one-time IEEPA tariff refund benefit; underlying wholesale margin improved 340 bps to 43.8% on price increases and shift to higher-margin owned brands.
MD&A: Gross Profit verify on EDGAR → -
high
Announced $500M acquisition of Marc Jacobs operating business via 50/50 JV with WHP Global; G-III will operate under license from JV (which retains IP) through 2041 with renewal options, funded by cash and revolver borrowings.
MD&A: Marc Jacobs Acquisition verify on EDGAR → -
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Net sales declined 8.2% to $536.0M as Calvin Klein and Tommy Hilfiger license expirations eliminated $86.9M in revenue; owned brands (Donna Karan, DKNY) and new licenses (French Connection, BCBG, Converse) partially offset decline.
MD&A: Net Sales 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.
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Generated by AI · Jun 10, 2026 5:00 PM