Sep 2, 2026 earnings call — Marc Jacobs acquisition completed, reshaping portfolio
Completed Marc Jacobs acquisition; Marc Jacobs expected to generate approximately $360 million in global sales this year.
Revenue $0.6B (est $0.6B) · EPS $0.26 (est $0.23)
Key quotes
"Together with WHP Global, we also own the Marc Jacobs intellectual property through a 50-50 percent joint venture, giving G-III a 50% partnership in the earnings generated by the licensing business."
"The improvement reflects the benefit of pricing actions, healthy full price selling and the continued mix toward -- mix shift toward our higher-margin owned brands."
"Excluding Tommy and Calvin, our go-forward portfolio grew high single digits in the quarter."
Analyst Q&A 3
quarter sales and Europe decline
Q (Robert Drbul · BTIG): The analyst asked how management viewed second-quarter sales progress and their comfort with the sales outlook (especially wholesale) for the rest of the year. He also asked why Europe declined this quarter and what assumptions they have for the back half, plus questions on gross margin, tariffs, and the promotional environment.
A: Management said the small sales shortfall was mainly timing issues like weather and delayed containers, and that missed shipments often flow into the next quarter rather than reflecting a lasting problem. They said Europe weakness came from much lower traffic, struggling department stores, fewer Middle East tourists, promotions and unusually warm weather, and that their wholesale order book is comparable to last year and "about 90% of an order book that's complete for the year." They also said tariffs were largely absorbed by pricing and a shift to higher-margin owned businesses drove improved gross margin, while full-price own brands are up over 20% and department store promotions are less aggressive.
"We're performing well at retail, performing well at wholesale, both those things give us comfort with the balance of the year forecast." — Neal Nackman (CFO)
3Q risks, outerwear, Marc Jacobs
Q (Ashley Owens · KeyBanc): The analyst asked whether there are other 3Q nuances or headwinds (Europe, weather, outerwear) and whether the better 4Q guide is mainly freight timing. She also asked how much of Marc Jacobs' path to $1 billion comes from expanding existing categories/channels versus truly new areas like ready-to-wear, and whether tariff assumptions in modeling changed.
A: Management said they are watching freight and storm-related transport risks carefully but currently see no critical issues. They said outerwear is a little more than 25% of sales but the company is hedged with swimwear and dresses, and outerwear is more fashion than weather-driven today. On Marc Jacobs, they said the brand historically touched all categories but focused on handbags, small leather goods and accessories and G-III will use its template and talent to broaden categories and channels; and Neal confirmed they changed modeling to view the current tariffs.
"Yes. At this point, we did change internally, and we are viewing the current tariffs as opposed in our modeling process." — Neal Nackman (CFO)
Marc Jacobs synergies and licensing
Q (Telsey Advisory Group): The analyst asked about near-term opportunities in the second half, seasonality to watch, and any immediate synergies that will benefit Marc Jacobs and G-III and affect overall margins.
A: Management said there are immediate synergies from leveraging G-III systems, real estate and talent to fill gaps at Marc Jacobs and improve efficiencies. They highlighted licensing opportunities via WHP that can be signed relatively quickly and plans to penetrate underpenetrated regions through G-III's offices or partners. They framed the acquisition as a way to capture brand value, licensing income, and operational leverage.
"There are licenses that are going to be signed relatively quickly." — Morris Goldfarb (CEO·CHAIR)