G-III Takes a Hit: AWWG Parent Company Sees Profits Plummet in H1 Due to Tariffs

The U.S. group GIII suffered in the second quarter. The company, shareholder of the Spanish company Awwg (owner of Pepe Jeans and Hackett), closed the period with a sharp decline in net income and sales. The company has updated its forecasts for the full year.

GIII, owner of Donna Karan, Karl Lagerfeld and Vilebrequin, ended the second quarter (ended July 31) with sales of 613.26 million dollars, down 4.88%. For the year to date, sales fell by 4.62% to 1,196 million dollars.

The company’s gross profit in the second quarter was 250.47 million dollars, down 9.2%, while the drop at the end of the first half was 7.06%, to 497 million dollars.

GIII ended the second quarter with a 54.77% drop in net income, which stood at 10.94 million dollars. At the end of the first half, net income fell to 18.69 million dollars, down 37.15%.

GIII has adjusted its forecasts for the year as a whole to reflect the current macroeconomic environment.

“Going forward, we have updated our fiscal 2026 guidance to reflect the current macroeconomic environment, the more cautious outlook from our retail partners and the impact of tariffs on our revenue and results,“ said Morris Goldfarb, group president and CEO.

The company has adjusted its guidance for the full year, reflecting “the current macroeconomic environment, a more cautious outlook from our retail partners, and the impact of tariffs on our revenues and results.“

The company anticipates a total incremental tariff cost of approximately $155 million. “This has been partially offset through supplier engagement, strategic sourcing changes and selective price increases,“ the group has detailed. “The remaining unmitigated impact, reflected in the fiscal 2026 forecast, is estimated at $75 million, primarily in the second half of the year,“ it has added.