G-III Apparel Group, Ltd. Announces Increased Investment in AWWG

Rhea-AI Summary

G-III Apparel Group, (Nasdaq: GIII) has increased its investment in All We Wear Group (AWWG) from 12% to approximately 19%. AWWG, a premier platform for international brands, owns Pepe Jeans London, Hackett, and Façonnable, generating over $650 million in revenues across 3,500+ points of sale in 86+ countries.

As part of the partnership, AWWG becomes the official agent for DKNY, Donna Karan, and Karl Lagerfeld in Spain and Portugal. G-III plans to leverage AWWG's presence in India to expand its key brands, while AWWG will benefit from G-III's North American operations. This strategic move aligns with G-III's growth priorities and aims to accelerate international expansion of its owned brands.

Positive

• Increased ownership stake in AWWG from 12% to 19%
• Partnership expands G-III's brand presence in Spain, Portugal, and India
• Access to AWWG's network of 3,500+ points of sale in 86+ countries
• Potential for accelerated international growth of G-III's owned brands

Negative

• None.

Insights

Financial Analyst

G-III Apparel Group's increased investment in AWWG from 12% to approximately 19% is a strategic move that could significantly impact the company's international expansion and revenue growth. This partnership with AWWG, which generates over $650 million in revenues across 3,500+ points of sale in 86+ countries, provides G-III with a robust platform for European and Indian market penetration.

Key points to consider:

• Market Access: The deal gives G-III's brands like DKNY, Donna Karan and Karl Lagerfeld official representation in Spain and Portugal, potentially boosting European sales.
• Indian Market Opportunity: Leveraging AWWG's presence in India, one of the world's fastest-growing fashion markets, could be a game-changer for G-III's expansion strategy, particularly for DKNY.
• North American Synergies: AWWG stands to benefit from G-III's strong North American operations, which could lead to increased revenues for both entities.
• Brand Portfolio Diversification: This investment further diversifies G-III's already impressive portfolio of over 30 brands, potentially reducing risk and increasing overall market share.

While the financial terms of the increased investment weren't disclosed, this move aligns with G-III's strategic priorities and could accelerate growth. Investors should monitor how this partnership translates into tangible revenue growth and market share gains in the coming quarters.

Market Research Analyst

G-III Apparel Group's expanded investment in AWWG is a calculated move to capitalize on global fashion market trends. Here's why this partnership is significant:

• European Market Penetration: With AWWG's strong presence in Europe, G-III can potentially accelerate the growth of its owned brands like DKNY and Karl Lagerfeld in key markets such as Spain and Portugal.
• Indian Market Opportunity: India's fashion market is projected to grow at a CAGR of 7.2% between 2023-2028. G-III's strategy to leverage AWWG's presence in India, particularly for DKNY, could tap into this burgeoning market.
• Cross-Continental Synergies: The reciprocal arrangement where AWWG benefits from G-III's North American operations creates a symbiotic relationship that could drive growth on both sides of the Atlantic.
• Brand Portfolio Strength: G-III's diverse portfolio of over 30 brands, combined with AWWG's iconic brands like Pepe Jeans London and Hackett, creates a formidable force in the global fashion industry.

This strategic move positions G-III to potentially outperform market growth rates in key regions. Investors should watch for increased market share and revenue growth in European and Indian markets as indicators of this partnership's success.

- Partnership Accelerates the International Expansion of G-III’s Owned Brands -

NEW YORK--(BUSINESS WIRE)-- G-III Apparel Group, Ltd. (Nasdaq: GIII) (“G-III” or the “Company”), a global leader in fashion, today announced an increased investment in All We Wear Group (“AWWG” or “Group”), which owns the iconic brands Pepe Jeans London, Hackett, and Façonnable. The previously disclosed strategic partnership for an ownership stake of 12%, now increases to approximately 19%.

Madrid-based AWWG, which is owned by M1 Group, LCatterton and founder Carlos Ortega, is a premier platform for international brands and generates over $650 million in revenues across over 3,500 points of sale in over 86 countries. As part of the previously announced agreement, the Group has become the official agent for DKNY, Donna Karan and Karl Lagerfeld across Spain and Portugal, as the Company seeks to maximize its European growth opportunity. G-III also plans to leverage AWWG’s notable presence in India, one of the fastest growing fashion markets in the world, to expand its key brands, led by DKNY. In turn, AWWG will benefit from G-III’s best-in-class operations in North America to expand its footprint in that market.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We are pleased to expand our investment in AWWG and strongly believe this partnership is another growth opportunity for our business. This transaction reinforces our strategic priorities and we look forward to further developing our relationship with AWWG and its talented team, as we accelerate our collective businesses.”

About G-III Apparel Group, Ltd.

G-III Apparel Group, Ltd., a global leader in fashion with expertise in design, sourcing and marketing, owns and licenses a portfolio of over 30 preeminent brands. The Company is differentiated across unique brand propositions, product categories and consumer touch points. G-III owns ten iconic brands including, DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin, and licenses over 20 brands, including Calvin Klein, Tommy Hilfiger, Nautica, Halston and National Sports leagues, among others.

Statements concerning G-III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, risks related to the reliance on licensed product, risks relating to G-III’s ability to increase revenues from sales of its other products, new acquired businesses or new license agreements as licenses for Calvin Klein and Tommy Hilfiger product expire on a staggered basis, reliance on foreign manufacturers, risks of doing business abroad, supply chain disruptions, risks related to acts of terrorism and the effects of war, the current economic and credit environment risks related to our indebtedness, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business, risks related to G-III’s ability to reduce the losses incurred in its retail operations, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions, the impact on G-III’s business of the imposition of tariffs by the United States government and business and general economic conditions, including inflation and higher interest rates, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release.

About All We Wear Group (AWWG)

At AWWG transformation is embedded in our DNA. Founded in 1998 under the name of Pepe Jeans Group, with headquarters in Madrid, Spain and design offices in London and Nice, this global fashion group integrates the iconic brands Pepe Jeans London, Hackett, and Façonnable. AWWG also is the Master Franchisee and Agency for Tommy Hilfiger (Spain and Portugal) as well as the Agency for Calvin Klein (Spain and Portugal).

AWWG currently has over 3,500 points of sale, with a presence in 86 countries globally and a workforce of more than 4,500 employees of 79 nationalities. As a global retail platform, the Group is committed to constant evolution and to create brand equity by transformation, in line with the changes, challenges, and inherent needs of the industry. The three iconic brands are unified as part of AWWG while each maintaining their own strong DNA and values, built up over thirty years in the retail sector with strong design teams, product development and brand enhancement. AWWG continuously evolves, pushing the limits and defying the status quo to create value through innovative, aspirational, and sustainable product that prioritize excellence, craftsmanship, differentiation, and quality.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729580732/en/

G-III Apparel Group, Ltd.

Company Contact:

Priya Trivedi

SVP of Investor Relations and Treasurer

(646) 473-5228

Company Media Contact:

Andrew Blecher

andrew.blecher@kekstcnc.com

Source: G-III Apparel Group, Ltd.

FAQ

What is G-III Apparel Group's new ownership stake in AWWG?

G-III Apparel Group has increased its ownership stake in All We Wear Group (AWWG) from 12% to approximately 19%.

How will the partnership with AWWG benefit G-III's brand expansion?

The partnership allows G-III to expand its DKNY, Donna Karan, and Karl Lagerfeld brands in Spain and Portugal through AWWG's network, and leverage AWWG's presence in India for further growth.

What is AWWG's annual revenue and market presence?

AWWG generates over $650 million in annual revenues and has a presence in over 3,500 points of sale across 86+ countries.

How does this investment align with G-III's strategic priorities?

The increased investment in AWWG aligns with G-III's strategic priorities by accelerating the international expansion of its owned brands and creating new growth opportunities.