G-III Apparel's (GIII) growth after fiscal 2027 is expected to be limited by the phaseout of PVH's (PVH) Calvin Klein and Tommy Hilfiger licenses and by rising operating costs, UBS Securities said Thursday in a report.

UBS expects "moderately stronger" medium-term growth from G-III's owned brands. Donna Karan is projected to lead with double-digit gains as it expands into more categories, while Karl Lagerfeld is set for growth as it broadens across men's and women's lines and increases distribution, the report said.

G-III's efforts to retain staff and invest in marketing to support the rollout of its core owned-brand portfolio will keep operating costs rising faster than sales in both the near and medium term, the report said.

UBS anticipates 390 basis points of gross margin expansion in fiscal Q3 from a year earlier, helped by last year's price increases and the shift toward higher-margin owned brands as PVH-licensed sales roll off. Margins in fiscal 2027 and beyond should benefit from tariff-mitigation efforts and continued mix improvement, the report said.

UBS raised its price target on G-III stock to $27 from $26 and maintained its neutral rating.

Price: 27.34, Change: -0.23, Percent Change: -0.85