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Macy's (M) Inks an Exclusive Deal with G-III for DKNY Brand
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Macy's, Inc. (M - Free Report) signed a deal with G-III Apparel Group, Ltd. (GIII - Free Report) to become the sole U.S. department store retailer to showcase DKNY women's apparel and accessories, an iconic New-York based brand. Per the deal, Macy’s will offer DKNY women’s apparel, handbags and shoes along with women’s and men’s outerwear as well as swimwear.
The aforesaid products will be sold at both Macy’s retail stores and macys.com, February 2018 onwards. Also, there are plans for more and upgraded DKNY shop-in-shops within Macy’s retail stores. Furthermore, both the companies will work together on expanding the brand offerings and developing unique products for DKNY.
Per the agreement, G-III Apparel will continue to run DKNY.com as well as the DKNY stores across the globe. Also, it is expected to maintain DKNY's agreements with international licensees and distributors outside the U.S. The non-exclusive categories and products circulated by DKNY’s licensees under other categories in the DKNY brand will continue to be sold at different department stores, including Macy’s.
In 2016, G-III entered an agreement with French luxury-goods conglomerate, LVMH Moët Hennessy Louis Vuitton, to acquire the latter’s subsidiary Donna Karan International, Inc. This brought Donna Karan and DKNY brands under the realm of G-III Apparel.
Coming back to the deal, we believe Macy’s will be able to better cater to its customers with unique products from the DKNY family. Notably, this is likely to increase traffic at Macy’s stores, which will help revive the company’s dwindling top- and bottom-line performance. In fact, the company has already been widening its operations via deals and collaborations to increase its customer base.
However, Macy’s shares slipped 0.9% following this announcement. Also, the stock plunged 22.5% over the past six months underperforming the Zacks categorized Retail-Wholesale sector’s return of 2.4%.
Nonetheless, a slew of measures announced by the company, which revolves around stores closures, cost containment, real estate strategy and investment in omnichannel capabilities to enhance sales, profitability and cash flows, makes us reasonably optimistic on the stock. In addition, its Zacks Rank #3 (Hold) and a VGM Score of ‘A’ along with a long-term earnings growth rate of 8.5%, boosts investors’ confidence.
The Children's Place, with a long-term earnings growth rate of 8% has surged nearly 49.2%, in the past six months.
Kate Spade & Company, with an impressive long-term earnings growth rate of 28.3% jumped 33.3%, in the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Macy's (M) Inks an Exclusive Deal with G-III for DKNY Brand
Macy's, Inc. (M - Free Report) signed a deal with G-III Apparel Group, Ltd. (GIII - Free Report) to become the sole U.S. department store retailer to showcase DKNY women's apparel and accessories, an iconic New-York based brand. Per the deal, Macy’s will offer DKNY women’s apparel, handbags and shoes along with women’s and men’s outerwear as well as swimwear.
The aforesaid products will be sold at both Macy’s retail stores and macys.com, February 2018 onwards. Also, there are plans for more and upgraded DKNY shop-in-shops within Macy’s retail stores. Furthermore, both the companies will work together on expanding the brand offerings and developing unique products for DKNY.
Per the agreement, G-III Apparel will continue to run DKNY.com as well as the DKNY stores across the globe. Also, it is expected to maintain DKNY's agreements with international licensees and distributors outside the U.S. The non-exclusive categories and products circulated by DKNY’s licensees under other categories in the DKNY brand will continue to be sold at different department stores, including Macy’s.
In 2016, G-III entered an agreement with French luxury-goods conglomerate, LVMH Moët Hennessy Louis Vuitton, to acquire the latter’s subsidiary Donna Karan International, Inc. This brought Donna Karan and DKNY brands under the realm of G-III Apparel.
Coming back to the deal, we believe Macy’s will be able to better cater to its customers with unique products from the DKNY family. Notably, this is likely to increase traffic at Macy’s stores, which will help revive the company’s dwindling top- and bottom-line performance. In fact, the company has already been widening its operations via deals and collaborations to increase its customer base.
However, Macy’s shares slipped 0.9% following this announcement. Also, the stock plunged 22.5% over the past six months underperforming the Zacks categorized Retail-Wholesale sector’s return of 2.4%.
Nonetheless, a slew of measures announced by the company, which revolves around stores closures, cost containment, real estate strategy and investment in omnichannel capabilities to enhance sales, profitability and cash flows, makes us reasonably optimistic on the stock. In addition, its Zacks Rank #3 (Hold) and a VGM Score of ‘A’ along with a long-term earnings growth rate of 8.5%, boosts investors’ confidence.
Key Picks
Better-ranked stocks in the broader Retail-Wholesale space include The Children's Place, Inc. (PLCE - Free Report) and Kate Spade & Company , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, with a long-term earnings growth rate of 8% has surged nearly 49.2%, in the past six months.
Kate Spade & Company, with an impressive long-term earnings growth rate of 28.3% jumped 33.3%, in the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>