G-III Apparel (GIII) strengthens brands with the Inter Parfums agreement – October 1, 2021
G-III Clothing Group, Ltd. (GIII – Free Report) has strengthened its strong brands through innovations as well as partnerships and licensing agreements. Moving forward in this direction, the company has entered into a long-term global licensing agreement with Inter Parfums, Inc. (IPAR – Free Report) to develop and distribute perfumes and related products. Under the agreement, the companies will combine their expertise to introduce products under the iconic banners of the Donna Karan and DKNY brands. Let’s take a closer look at the deal as well as other cautious growth efforts undertaken by G-III Apparel.
Dealing with Inter Parfums auspicious
G-III Apparel has five major global brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. The company has expanded these product lines to meet consumer demand for high quality fashion and accessories.
Management emphasizes that the Donna Karan and DKNY brands are firmly established in the fashion and fragrance categories. The company is delighted with the development of these two brands through the exclusive partnership with Inter Parfums. The company believes that Inter Parfums’ expertise in the development of perfumes and its distribution is likely to strengthen the anchoring of the Donna Karan and DKNY brands in the perfume market.
Inter Parfums will effectively take the exclusive license from July 1, 2022 and plan to launch new fragrances under the Donna Karan and DKNY brands in 2023.
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Encourage brand expansion efforts
Retailers, including G-III Apparel, are capitalizing on resuming consumer purchasing trends for clothing and accessories as they resume outdoor activities amid easing pandemic brakes . With the acceleration of socialization, consumers are renewing their wardrobes and splurging on fashion products. The big brands of G-III Apparel are doing well amid these market trends. The strong performance of these brands is helping the company expand into the casual, outdoor and sportswear markets.
During the second quarter of fiscal 2022, G-III Apparel experienced continued strength in the casual categories. The company reported higher sales penetration in its broader lifestyle categories such as dresses, more refined sportswear, and workwear. The company’s shoe and handbag categories continued to grow. When it comes to athleisure and sportswear, it is constantly expanding its collections to take advantage of growing consumer demand. The company successfully launched women’s brand Karl Lagerfeld Paris in 75 doors at Macy’s. It is on track to triple the distribution of its 250-door sportswear line by the end of fiscal 2022 and to introduce a 75-door clothing line by spring. The company’s latest agreement with Inter Parfums to boost fragrances also looks encouraging.
The conclusion, improving market trends, coupled with a strong brand image and well-defined measures to strengthen brand banners, should allow G-III Apparel to remain well positioned in the times to come. The company is also effectively using digital and social media platforms to expand its reach in the market and is making good progress in its supply chain strategies.
Shares of this company Zacks Rank # 1 (Strong Buy) are up 19.2% during the year-to-date period compared to the industry’s 12.2% rise.
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