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G-III Apparel Renews Levi Strauss License Deal, Stock Up 42%

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G-III Apparel Group, Ltd. (GIII - Free Report) recently renewed its license deals for the Levi’s and Dockers brands. The company has extended the licenses for these labels with Levi Strauss (LEVI - Free Report) through Nov 30, 2024. Impressively, G-III Apparel and Levi Strauss entered into a partnership 22 years ago. Notably, the Levi’s brand covers men’s and women’s outerwear while Dockers includes men’s outerwear. Levi’s outerwear collections will be available at select department outlets, specialty stores, premium-outerwear retailers and Levi’s retail outlets, whereas Dockers outerwear will be sold at select department stores throughout the nation.

G-III Apparel will continue to bring creativity and innovation in the outerwear category, alongside capitalizing on its diversified distribution across all platforms. G-III Apparel boasts a robust portfolio of over 30 licensed and proprietary brands, highlighted by five global power labels including DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. Apart from Levi’s and Dockers, the company’s other well-known licensed brands are Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, and Vince Camuto.

Last year in June, G-III Apparel had inked a license agreement with PVH Corp.’s (PVH - Free Report) subsidiary, Calvin Klein, for a term of five years. This allows the company to design and distribute Calvin Klein Jeans women’s jeanswear assortments across the United States and Canada besides other women’s Calvin Klein businesses licensed to G-III Apparel.

G-III’s Performance

Shares of the New York-based company rose 6.6% during the trading session on Aug 11. Over the past three months, this Zacks Rank #3 (Hold) stock has surged 41.5% compared with the industry’s 42.7% rally. G-III Apparel’s shares might have probably been gaining on restructuring actions of its retail business, which has been dismal over the recent quarters due to weakness in underlying brands.



A couple of months ago, management informed that it has been on track with the restructuring of its retail business, including eliminating the underperforming stores. This restructuring includes shutting down the 110 Wilsons Leather and 89 G.H. Bass outlets. Post restructuring, the retail unit will initially comprise 41 DKNY and 13 Karl Lagerfeld Paris outlets. Also, it will have e-commerce sites for Donna Karan, Andrew Marc, Karl Lagerfeld Paris, DKNY, Wilsons Leather and G.H. Bass. Meanwhile, G-III Apparel’s robust strategies, including licensing of well-known brands to expand its product, portfolio bode well.

Investors may count on a better-ranked stock such as Crocs, Inc. (CROX - Free Report) , which boasts an impressive long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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