DKNY Owner G-III Warns of Tariff Impact on Profit, Withdraws Outlook

Shares of G-III Apparel Group (GIII) tumbled 15% Friday when the owner of the DKNY and Donna Karan clothing brands warned profit would be hurt by U.S. tariffs, and withdrew its full-year outlook.

The company expects that considering the duties in effect currently, the cost of goods imported into the country would “result in additional expense of approximately $135.0 million, which is expected to primarily be weighted to the second half of the year.” Because of that, G-III pulled its outlook for fiscal 2026 net income, non-GAAP net income, and adjusted EBITDA that it provided in March.

CEO Morris Goldfarb noted the company is affirming its full-year sales expectation of $3.14 billion, while G-III is “working diligently to mitigate the impact of tariffs.” Goldfarb said the management team “has a proven track record of successfully navigating periods of uncertainty, and we view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share.”

Q1 Results Top Analysts’ Expectations

The news offset the company’s strong fiscal 2026 first-quarter performance. G-III posted adjusted earnings per share of $0.19 on net sales that declined 4% year-over-year to $583.6 million but also topped consensus forecasts of analysts surveyed by Visible Alpha.

G-III Apparel Group shares have lost more than a quarter of their value in 2025.