Dive Brief:
- G-III Apparel Group has inked a licensing deal with Nike-owned Converse for a collection of men’s and women’s apparel set to launch in fall 2025, according to a company earnings call Thursday.
- G-III CEO Morris Goldfarb said on the call that the addition of the Converse license offers an opportunity to expand its activewear and lifestyle business and provides access to a “differentiated consumer.” The company owns DKNY, Donna Karan, Karl Lagerfeld and G.H. Bass, among others.
- Also Thursday, the company reported second quarter net sales of $644.8 million, a 2% decrease year over year.
Dive Insight:
When asked by analysts about the opportunities with the Converse license, Goldfarb said the brand fits into a business area it already has, and added “what’s better than a partnership with Nike?” Converse is a brand that G-III believes it can contribute to globally, he said.
“We've had partnerships with Nike before, and it's a challenge,” Goldfarb said. “Nike factories are unique. They have to be Nike approved, which is a rigid approval process. Nike was comfortable that we could achieve it, and we have.”
A Nike spokesperson didn’t immediately respond to Fashion Dive’s request for comment.
G-III reaffirmed its full year net sales outlook. It expects annual net sales to increase 3% year over year to $3.2 billion.
“Having the most desirable brands is central to our strategy and I am pleased with the transition to our go-forward portfolio, which will continue to evolve for the future,” Goldfarb said in the release. “Our new businesses are working.”
Last year, G-III signed licensing agreements for Champion and Halston. On Thursday’s call, Goldfarb said the product offerings for those deals “are just hitting retail floors,” and products from the Converse and BCBG deals will launch this fall.
Earlier this year, G-III bought a stake in All We Wear Group in a bid to accelerate expansion in Europe. It later increased its stake from 12% to 19%.
