G-III acquires masstige brand Karl Lagerfeld with $2 billion sales plans

0

“We look for iconic brands, and I don’t think there is anything more iconic than Karl Lagerfeld. Karl has the ability to succeed across all categories. Our goal is to further expand our portfolio through ownership brands and increase licensing opportunities,” Goldfarb said. “It gives us the opportunity to connect with a variety of customers and increase our digital presence. tradition to become one of the largest brand owners.”

G-III, which posted annual revenue of $2.77 billion last year, also owns Donna Karan and DKNY, among other brands, and licenses a number of other fashion brands. Americans, notably Calvin Klein and Vince Camuto. Karl Lagerfeld’s brand plans resemble G-III’s plans for the DKNY brand after its acquisition from LVMH in 2016: achieve an ambitious growth goal (in DKNY’s case, $1 billion) by accelerating scale . It also represents the company’s move to owning more brands directly as well as building its European portfolio – in September it acquired French fashion brand Sonia Rykiel.

With this agreement, G-III will also acquire the 10% stake of the Karl Lagerfeld brand in its joint venture in China. China will be a key part of its growth strategy, according to G-III, with global expansion, increased licensing deals, new product categories and digital, wholesale and retail operations part of the way forward. . As an apparel group, G-III’s pitch to brands is its vertical alignment: it oversees design, sourcing and manufacturing. Leveraging an existing infrastructure of resources was part of the appeal of the Karl Lagerfeld brand, says CEO Pier Paolo Righi. Brand management from the company’s headquarters in Amsterdam will remain intact.

“Our teams have a lot of things that we can pull together,” says Righi. “There’s a lot of mutual respect and a lot of resources to tap into and learn from.”

G-III announced the cash deal on Monday, with both boards approving the acquisition. The additional stake previously belonged to a group of private and public investors. The transaction is expected to be finalized in the second half of 2023.

Comments, questions or comments? Email us at [email protected].

More from this author:

The Lanvin Group plans an IPO in New York under a SPAC agreement

Nike sales increase 5% thanks to North America and digital growth

US and Europe slap Russia with luxury sanctions to target oligarchs

Share.

Comments are closed.