G-III Apparel Group, Ltd. ( GIII Quick Quote GIII - Free Report) has been strengthening its power brands through innovations as well as partnerships and licensing agreements. Progressing on such lines, the company entered into a long-term global licensing agreement with Inter Parfums, Inc. ( IPAR Quick Quote IPAR - Free Report) to develop and distribute fragrances and related products. Per the agreement, the companies will combine their expertise to introduce products under the iconic Donna Karan and DKNY brand banners. Let’s take a closer look at the deal as well as other prudent growth efforts undertaken by G-III Apparel. Deal With Inter Parfums Bodes Well
G-III Apparel boasts of five global power brands — DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. The company has been expanding these product lines to cater to consumers’ demand for high-quality fashion and accessories.
Management highlights that the Donna Karan and DKNY brands have solid footing in the fashion and fragrance categories. The company is enthusiastic regarding the expansion of these two brands through the exclusive partnership with Inter Parfums. The company believes that Inter Parfums’ expertise in developing fragrances and its distribution is likely to fortify the Donna Karan and DKNY brands’ footing in the fragrance market. Inter Parfums will take on the exclusive license effectively from Jul 1, 2022, and plans to launch new fragrances under the Donna Karan and DKNY brands in 2023. Image Source: Zacks Investment Research Encouraging Brand Expansion Efforts
Retailers including G-III Apparel are gaining from consumers’ resumption of apparel and accessories shopping trends as they return to outdoor activities amid relaxation of pandemic-led curbs. With socializing picking up pace, consumers are revamping their wardrobes and splurging on fashion products. G-III Apparel’s power brands have been doing well amid such market trends. Solid performances of these brands are helping the company to grow in the casual, outdoor and sports apparel markets.
During second-quarter fiscal 2022, G-III Apparel witnessed continued strength in the casual categories. The company reported higher penetration of sales across its broader lifestyle categories such as dresses, more polished sportswear and wear-to-work clothing. The company’s shoes and handbag categories have continued to grow. With respect to athleisure and sportswear, it is consistently expanding its collections to cash in on the consumers' growing demand. The company successfully launched the Karl Lagerfeld Paris women's brand across 75 doors at Macy's. It is on track to triple the distribution of its sportswear line to 250 doors by the end of fiscal 2022 and introduce a dress line in 75 doors by spring. The company’s latest accord with Inter Parfums to boost fragrances also looks encouraging. Wrapping up, improving market trends coupled with a strong brand image and well-chalked moves to boost brand banners are likely to keep G-III Apparel well placed in the times ahead. The company is also efficiently utilizing digital and social media platforms to widen market reach and is progressing well with supply chain strategies. Shares of this Zacks Rank #1 (Strong Buy) company have increased 19.2% in the year-to-date period compared with the industry’s rise of 12.2%. 2 Picks You Can’t Miss Out On Delta Apparel, Inc. ( DLA Quick Quote DLA - Free Report) , flaunting a Zacks Rank #1, delivered an earnings surprise of 102.2% in the last four quarters, on average. You can see . the complete list of today’s Zacks #1 Rank stocks here Hanesbrands Inc. ( HBI Quick Quote HBI - Free Report) , sporting a Zacks Rank #1, has a long-term earnings growth rate of 8.5%.