Shares of G-III Apparel Group (NASDAQ: GIII) tumbled 5.31% in pre-market trading on Friday following the company's first-quarter earnings report and updated guidance. Despite beating Q1 earnings expectations, the apparel maker's decision to withdraw certain full-year guidance and concerns over tariff impacts have rattled investors.

G-III reported Q1 adjusted earnings per share of $0.19, surpassing the analyst consensus of $0.13. Revenue for the quarter came in at $583.6 million, slightly ahead of expectations. However, the company's outlook for the second quarter and the rest of the fiscal year has raised concerns.

The apparel manufacturer withdrew its guidance for net income, adjusted net income, and adjusted EBITDA for fiscal year 2026, citing uncertainties surrounding tariffs and related macroeconomic conditions. G-III expects unmitigated costs from tariffs on goods imported into the U.S. to result in an additional expense of approximately $135 million in the second half of fiscal 2026.

Adding to investor worries, G-III provided weak guidance for the second quarter. The company expects Q2 earnings per share between $0.02 and $0.12, significantly below the consensus estimate of $0.48. Q2 revenue is projected at around $570 million, also falling short of the $621 million analysts were expecting. Despite these headwinds, G-III maintained its full-year net sales outlook of about $3.14 billion.

CEO Morris Goldfarb attempted to reassure investors, stating, "We view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share." However, the market's initial reaction suggests that investors remain cautious about the company's near-term prospects in the face of economic uncertainties and tariff pressures.