Calvin Klein, Tommy Hilfiger Remain G-III’s Top-Sellers
The licensed Calvin Klein and Tommy Hilfiger brands accounted for 46% of G-III Apparel’s $2.8 billion in net sales in the year ended Jan. 31, up slightly from 44% a year earlier, G-III said in a 10K.
PVH Corp. has 10 distinct licensing agreements with G-III for Calvin Klein and three for Tommy Hilfiger, the most recent of which was extended to include women’s sports and activewear, denim and other products. PVH owns both brands, and also licenses in DKNY from G-III.
Overall, licensed brands accounted for 58.6% of G-III’s fiscal 2018 net sales, down from 60.7% a year earlier. The company last year renewed its pact with Levi’s for Levi’s and Dockers-branded outerwear and extended those with the National Basketball Association and the Camuto Group (Vince Camuto dresses).
It also wants to renew deals with Major League Baseball (expired last October) and the National Hockey League (expired June 2017) and extend them with Ivanka Trump (dresses, suits) and Guess? (men’s and women’s outerwear, dresses), both of which end this coming December.
G-III ended an agreement with Jessica Simpson (outerwear, dresses); sales of outwerwear and dresses under her brand dropped by $15.7 million in the most recent year.
In total, G-III has committed to $563 million in guarantees as of Jan. 31, $148 million of which are due within a year and $188 million within 1-3 years.
Macy’s remains G-III’s top retailer, accounting for 22.8% of net sales, up from 21.8% a year earlier. G-III’s business with Macy’s is likely to further grow this year as the retailer launched department store-exclusive DKNY apparel in February.
G-III also is paring back the number of retail stores it operates under the DKNY, G.H. Bass, Wilsons Leather, Karl Lagerfeld Paris, CK Performance and Vilebrequin nameplates, ending fiscal 2018 with 361, down from 411 a year earlier. It plans to close another 65-70 locations this year. A Lagerfeld flagship store is slated to open in New York this month.
It also has a joint venture and licensing agreement with Amlon Capital for DKNY and Donna Karan for apparel, handbags, luggage and accessories in China. The joint venture also has opened 13 DKNY stores there since being formed last August.
G-III Apparel, Neal Nackman, Chief Financial Officer, 212-403-0500