Shares of G-III Apparel Group (NASDAQ: GIII) plummeted 11.38% in Friday's trading session after the company withdrew its full-year guidance due to uncertainties surrounding tariffs and related macroeconomic conditions. The significant drop came despite the apparel maker reporting better-than-expected first-quarter earnings.

G-III reported Q1 adjusted earnings per share of $0.19, surpassing analyst expectations of $0.13. However, the company's outlook for the second quarter fell short of estimates, with projected earnings per share between $0.02 and $0.12, well below the consensus of $0.48. The apparel manufacturer 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.

Despite maintaining its full-year net sales outlook of about $3.14 billion, G-III's decision to withdraw guidance for net income, adjusted net income, and adjusted EBITDA has rattled investors. CEO Morris Goldfarb attempted to reassure the market, stating, "We view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share." However, the sharp stock decline indicates that investors remain highly cautious about the company's near-term prospects in the face of economic uncertainties and mounting tariff pressures.