G-III Apparel Group Ltd. ( GIII ) shares traded lower Thursday after the apparel company reported fourth-quarter results that missed expectations and issued fiscal 2027 guidance below Wall Street estimates.

Fourth-Quarter Earnings And Sales Miss Estimates

The company reported fourth-quarter adjusted earnings of 30 cents per share, well below the analyst consensus estimate of 59 cents.

Quarterly sales totaled $771.5 million, declining 8.1% year over year and missing the Street estimate of $791.98 million.

Profitability also weakened during the period. Gross profit fell to $285.5 million from $331.6 million in the prior-year quarter. The company posted an operating loss of $29.09 million, compared with an operating profit of $71.77 million a year earlier.

Saks Bankruptcy, Tariffs Hit Sales

During the earnings call, CFO Neal Nackman said, “Fourth quarter gross margins were 37% compared to 39.5% in the previous year, reflecting the negative impact of tariffs, which was the largest quarter impacted for the year, partially offset by a favorable mix shift toward more full price sales.”

“Relative to our guidance, sales results were negatively impacted by approximately $20 million as we stopped shipments to Saks in December ahead of the bankruptcy filing.”

The company lost about $20 million in sales due to Saks’ bankruptcy and faced tariff-related pressure on gross margins.

Inventories declined 3.8% year over year to $460.0 million, compared with $478.1 million in the prior year.

G-III ended the fiscal year with cash and cash equivalents of $406.7 million.

Fiscal 2027 Outlook Falls Short Of Estimates

G-III Apparel Group ( GIII ) expects first-quarter GAAP and adjusted losses of 40 cents to 30 cents per share, compared with estimates of 14 cents and 4 cents, respectively. The company forecasts first-quarter sales of $530.000 million versus the $525.120 million analyst estimate.

For fiscal 2027, G-III projects GAAP and adjusted earnings of $2.00 to $2.10 per share, below analyst estimates of $2.75 and $2.99, respectively. Sales are expected to reach $2.710 billion, compared with the $2.707 billion consensus estimate.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Looking to fiscal 2027, we are building on the momentum of our go-forward portfolio, which we expect to deliver high-single digit growth for the year, helping to offset the significant lost sales as we exit the Calvin Klein and Tommy Hilfiger businesses.”

He added, “We are focused on driving gross margin expansion while streamlining our cost structure to unlock productivity and profitability across the business.”

To improve margins, the company is implementing cost-saving initiatives. Management expects these efforts to generate run-rate savings of about $25 million in fiscal 2028.

GIII Price Action: G-III Apparel Group ( GIII ) shares were down 10.47% at $26.47 at the time of publication on Thursday, according to Benzinga Pro data.