G-III Apparel Group's (GIII) stock plummeted 5.79% in pre-market trading on Tuesday, as the fashion conglomerate's weak sales outlook for fiscal 2025 overshadowed its better-than-expected earnings for the fiscal third quarter.

While the company reported adjusted earnings per share of $2.59 for the quarter ended October 31, surpassing analysts' estimates of $2.28, its revenue of $1.09 billion fell short of expectations and grew only 1.8% year-over-year.

The major setback for G-III Apparel was its lowered net sales guidance for fiscal 2025. The company now expects annual sales of around $3.15 billion, down from its previous guidance of $3.20 billion and below analysts' estimates of $3.20 billion. G-III Apparel cited cautious consumer spending and the impact of unseasonable weather as factors behind the reduced sales outlook.