Dive Brief:
- G-III Apparel Group has signed a 25-year master license agreement with Xcel Brands for the Halston brand, G-III announced in its earnings Tuesday.
- Under the agreement, G-III will design and produce all categories of men’s and women’s products for the Halston brand and distribute them globally.
- At the end of the 25-year agreement, G-III will have the option to buy the brand.
Dive Insight:
The agreement resulted in an upfront advance payment in May, according to a news release from Xcel Brands, but financial terms of the deal weren’t disclosed.
G-III’s first delivery of Halston products is expected for fall 2024. The line will be distributed through department stores and digitally, and G-III leaders believe “significant opportunity exists in the better women’s apparel space,” it said in the earnings.
“G-III’s design and production expertise, retail distribution, and sourcing capabilities make them an outstanding partner to fulfill our vision for the Halston brand,” Robert D’Loren, chairman and CEO of Xcel Brands, said in its news release. “The company has a strong track record of building substantial brands and we see significant opportunity for Halston as part of G-III’s portfolio.”
Designer Roy Halston Frowick began designing womenswear under his own name in 1966, and is credited for using jersey, cashmere and ultrasuede to design flowing jumpsuits, wrap dresses and caftans. In 1983, it became one of the first mass fashion brands when Halston debuted the Halston III line at JCPenney. However, that deal eventually tarnished the image of the brand name, and the line was slowly dropped from high end stores. Halston himself passed away from complications due to AIDS in 1990. The brand languished until Xcel Brands officially acquired the remaining Halston trademarks in 2019 after buying the H by halston and H Halston trademarks in 2014
Also in G-III’s earnings for its first quarter was a reported net sales decrease of 11.9% from the previous year to $606.6 million. Net income for the quarter was $3.2 million.
Despite the drop, the company raised guidance for the full fiscal year ending Jan. 31, 2024. It now expects net sales of $3.29 billion and net income of between $125.0 million and $130.0 million.
G-III’s portfolio includes more than 30 brands. The company owns DKNY, Donna Karan, Karl Lagerfeld and G.H. Bass, among others.
