Reported results
- GAAP net income per diluted share of $0.46 compared to $0.25 in the prior year quarter
- Non-GAAP net income per diluted share of $0.26 compared to $0.25 in the prior year quarter
- Net sales of $554.1 million compared to $613.3 million in the prior year quarter (down 10%)
- GAAP gross margin increased 440 basis points to 45.2% compared to 40.8% in the prior year quarter
- Go-forward portfolio sales grew at a high-single digit rate during the quarter
- Cash and cash equivalents of $529.2 million compared to $301.8 million in the prior year
Guidance
- Fiscal 2027 (year ending January 31, 2027) net sales expected to be approximately $2.71 billion, compared to net sales of $2.96 billion for fiscal 2026
- Fiscal 2027 GAAP net income expected between $181.0 million and $185.0 million, or diluted earnings per share between $4.10 and $4.20, compared to net income of $67.4 million or $1.51 per diluted share for fiscal 2026
- Fiscal 2027 non-GAAP net income expected between $97.0 million and $101.0 million, or diluted earnings per share between $2.20 and $2.30, compared to non-GAAP net income of $116.2 million or diluted earnings per share of $2.61 for fiscal 2026
- Fiscal 2027 adjusted EBITDA expected between $174.0 million and $178.0 million, compared to adjusted EBITDA of $192.4 million in fiscal 2026
- Third quarter fiscal 2027 net sales expected to be approximately $870.0 million, compared to net sales of $988.6 million in the prior year third quarter
- Third quarter fiscal 2027 GAAP net income expected between $59.0 million and $64.0 million, or diluted earnings per share between $1.35 and $1.45
Notes
The guidance for fiscal 2027 and third quarter excludes any impact from the Marc Jacobs acquisition, which the company expects to be slightly dilutive in fiscal 2027. Net sales guidance incorporates the loss of approximately $460 million of sales from Calvin Klein and Tommy Hilfiger products. The company’s outlook assumes tariffs for the remainder of the year will approximate current rates.
Price and volatility reaction
The stock moved -11.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -19.4 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 32.17 | 2026-09-01 |
| Close after release | 28.47 | 2026-09-02 |
| Realised move | -11.5% | close to close |
| 30d ATM IV change | -19.4 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.