Dive Brief:
- G-III Apparel Group, Ltd. struck a deal with HanesBrands Inc. for a multi-year strategic license agreement for the design, production and distribution of the Champion and C9 Champion brands in North America, the companies announced Thursday.
- The deal is a move to grow Champion’s global network, Vanessa LeFebvre, Hanes’ president of global activewear, said in the release.
- The licensing deal was announced along with G-III’s second quarter earnings. G-III reported $659.8 million in net sales, up 9% from $605.2 million in the same quarter last year.
Dive Insight:
The deal with Hanes adds to G-III’s portfolio of more than 30 brands. When it last reported earnings in June, it announced a new master license deal for the Halston brand. Its portfolio also includes DKNY, Donna Karan, Karl Lagerfeld and G.H. Bass.
“G-III’s proven track record in category expansion and their best-in-class global infrastructure will enable us to reach a wider consumer base who already are, or will soon become, loyal to the Champion brand for generations,” LeFebvre said. “...This partnership creates a significant opportunity to leverage G-III’s expertise in the outerwear category and their diversified distribution network, which will enable us to extend our offerings and support the brand’s lifestyle proposition.”
G-III’s vision for Champion is to build on the brand’s legacy by creating heritage pieces, Jeffrey Goldfarb, executive vice president of G-III, said in the release.
“This license aligns perfectly with G-III's core competencies in outerwear, is a strong complement to our other brands, and will fit seamlessly into our already well-developed outerwear divisions and global network,” Goldfarb said.
Financial terms of the Hanes deal weren’t disclosed, and a spokesperson for G-III didn’t respond to Fashion Dive’s request for additional information ahead of press time.
G-III’s net income for the quarter was $16.4 million. The Q2 results beat its previous estimates of $595 million in net sales.
The company raised its full fiscal year outlook for net sales to approximately $3.3 billion, compared to its previous estimate of $3.23 billion. Also for the full year, it expects a net income of between $145 million and $150 million.
The 9% increase in G-III’s net sales shows a drastic difference from its first quarter results, where its net sales decreased 11.9%.
