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GIII's Donna Karan Growth Momentum Supports Brand-Led Expansion
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Key Takeaways
Donna Karan sales rose more than 45% year over year in the second quarter of fiscal 2027.
Handbags posted double-digit growth, while Donna Karan footwear distribution is expanding this fall.
G-III raised fiscal 2027 adjusted EPS guidance to $2.20-$2.30 amid its shift toward owned brands.
G-III Apparel Group, Ltd. (GIII - Free Report) views Donna Karan as one of its most powerful growth opportunities, supported by solid consumer demand, healthy full-price selling and aspirational positioning. Management sees significant room to expand the brand across categories, channels and geographies, with product newness, lifestyle extensions and digital-first marketing helping broaden its reach and strengthen consumer engagement.
That momentum was evident in the second quarter of fiscal 2027, when Donna Karan sales increased more than 45% year over year. Digital performance also remained strong, supported by growth in traffic, conversion and average unit retail. The dress business was a standout, while Donna Karan Weekend, launched last November, continued to perform well.
Category expansion is adding another growth lever. Handbags delivered double-digit growth during the quarter, while footwear also performed well. Footwear distribution is expanding this fall through additional doors at Nordstrom, Macy’s and Dillard’s, extending Donna Karan’s presence across major retail partners and supporting a more diversified business mix.
Marketing initiatives are designed to broaden awareness. Kendall Jenner is the face of Donna Karan’s Fall 2026 global campaign, which management believes can introduce the brand to new audiences worldwide. Donna Karan will also participate in Macy’s celebration of American fashion through a limited-edition capsule reimagining iconic pieces from the brand’s legacy.
Management continues to see meaningful long-term growth potential for Donna Karan. At the company level, G-III raised fiscal 2027 adjusted earnings per share (EPS) guidance to $2.20-$2.30 and continues to expect its go-forward portfolio to grow at a high-single-digit rate, excluding Marc Jacobs from the outlook. These trends provide a supportive backdrop for Donna Karan as G-III shifts toward a higher-margin owned-brand mix.
GIII’s Price Performance, Valuation & Estimates
Shares of G-III have lost 18.8% over the past three months compared with the industry’s 1.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GIII trades at a forward price-to-sales ratio of 0.42, below the industry’s average of 2.52. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for G-III’s fiscal 2027 earnings implies a year-over-year decline of 13.8%, whereas the estimate for fiscal 2028 indicates a decline of 8.4%. Earnings estimates for fiscal 2027 and 2028 have been revised upward by 2 cents each over the past 30 days.
Image Source: Zacks Investment Research
GIII currently carries a Zacks Rank #3 (Hold).
Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates 62.1% growth from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.
View the Zacks #1 Rank List
Image: Bigstock
GIII's Donna Karan Growth Momentum Supports Brand-Led Expansion
Key Takeaways
G-III Apparel Group, Ltd. (GIII - Free Report) views Donna Karan as one of its most powerful growth opportunities, supported by solid consumer demand, healthy full-price selling and aspirational positioning. Management sees significant room to expand the brand across categories, channels and geographies, with product newness, lifestyle extensions and digital-first marketing helping broaden its reach and strengthen consumer engagement.
That momentum was evident in the second quarter of fiscal 2027, when Donna Karan sales increased more than 45% year over year. Digital performance also remained strong, supported by growth in traffic, conversion and average unit retail. The dress business was a standout, while Donna Karan Weekend, launched last November, continued to perform well.
Category expansion is adding another growth lever. Handbags delivered double-digit growth during the quarter, while footwear also performed well. Footwear distribution is expanding this fall through additional doors at Nordstrom, Macy’s and Dillard’s, extending Donna Karan’s presence across major retail partners and supporting a more diversified business mix.
Marketing initiatives are designed to broaden awareness. Kendall Jenner is the face of Donna Karan’s Fall 2026 global campaign, which management believes can introduce the brand to new audiences worldwide. Donna Karan will also participate in Macy’s celebration of American fashion through a limited-edition capsule reimagining iconic pieces from the brand’s legacy.
Management continues to see meaningful long-term growth potential for Donna Karan. At the company level, G-III raised fiscal 2027 adjusted earnings per share (EPS) guidance to $2.20-$2.30 and continues to expect its go-forward portfolio to grow at a high-single-digit rate, excluding Marc Jacobs from the outlook. These trends provide a supportive backdrop for Donna Karan as G-III shifts toward a higher-margin owned-brand mix.
GIII’s Price Performance, Valuation & Estimates
Shares of G-III have lost 18.8% over the past three months compared with the industry’s 1.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GIII trades at a forward price-to-sales ratio of 0.42, below the industry’s average of 2.52. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for G-III’s fiscal 2027 earnings implies a year-over-year decline of 13.8%, whereas the estimate for fiscal 2028 indicates a decline of 8.4%. Earnings estimates for fiscal 2027 and 2028 have been revised upward by 2 cents each over the past 30 days.
Image Source: Zacks Investment Research
GIII currently carries a Zacks Rank #3 (Hold).
Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates 62.1% growth from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.