Lawrence Berger, co-founder of Ames Watson, explains how the private equity firm has helped reinvent and revive the Lids retail chain, focusing on exclusivity, customization, and cultural relevance.
Ames Watson, based in Columbia, MD, was founded in 2017 by Berger, previously managing director and chief investment officer at Blackstreet Capital, and Tom Ripley, founder of Severn Partners.
The firm’s first acquisition was Fanzz, a Salt Lake City, UT-based fan apparel retailer with fewer than 100 doors, in 2018. By early 2019, Ames Watson closed on its acquisition of Lids at a price of $100 million, 40 percent less than what the former owner, Genesco, paid for the chain in 2014.
With over $2 billion in annual revenue, Ames Watson’s portfolio of owned or invested brands in the active lifestyle space includes the Champion teamwear business, Mitchell & Ness and Ebbets Field. The firm recently made headlines with its $140 million acquisition of Claire’s teen accessory chain.
SGB: Can you tell us about Ames Watson? What’s unique about your approach?
Berger: Ames Watson is a permanent capital vehicle, meaning we invest our own capital rather than relying on outside investors. We’re structured much like a mini-Berkshire Hathaway, acquiring businesses, improving their operations and profitability and using that cash flow to reinvest in new opportunities. We take a long-term view; we’re not focused on selling; we’re focused on building enduring businesses that can thrive for decades to come. Over the past six years, we’ve grown rapidly since our first acquisition, which was Fanzz. Our portfolio today includes Lids, LidsU, Claire’s, Champion, South Moon Under, and numerous others.
SGB: What attracted you to acquiring Lids?
Berger: When we bought Lids from Genesco in 2019, it was an iconic brand that was underperforming. We saw an opportunity to modernize the business and restore its cultural relevance, making it more meaningful to today’s consumer. That’s exactly what we set out to do, and the brand has performed very well since.
SGB: Fanatics stepped in as a minority owner in acquiring Lids. How are they involved in the Lids business? Why were they the right partner?
Berger: Fanatics has been an exceptional partner to us. Their operational expertise and scale have helped strengthen both the online and in-store sides of Lids. It’s a collaborative relationship that has played an important role in the brand’s continued growth. Fanatics runs the Lids.com website, and they’ve done a great job with it. It complements our exclusive in-store offerings.
SGB: Ames Watson talks about using the same playbook used to revive Lids in reviving Claire’s. What was the playbook to turn around the Lids business?
Berger: There wasn’t one single fix. When we acquired Lids, very little of the assortment was exclusive to them. Today, about 70 percent of what we sell is. We rebuilt our training and labor model to deliver better service, reimagined our marketing to emphasize the in-store experience, and made customization a core part of the brand. We introduced collaborations for the first time and began hosting events around major sporting moments.
We’re long-term operators, so every decision we make is to build lasting value, not flip a business. We’ve leaned into the hat community, fashion and culture. We’ll always serve the sports fan, but we also cater to those who treat hats as part of their personal style. The goal is for every customer to feel a sense of excitement and discovery when they walk into a Lids store. We want them to be drawn in, knowing there will always be something new and unexpected waiting inside – that has been central to the brand’s revival.
SGB: Earlier this year, Lids launched a new store concept. What’s unique about it?
Berger: Our new stores completely reimagine the shopping experience. The layout and presentation are more elevated, with cleaner organization and stronger visual impact. Every detail, down to how the hats are displayed, was designed to make it easier for customers to explore and find what they want.
The biggest change is our expanded customization area. Beyond embroidery, customers can now choose from a wide assortment of patches, including limited edition options, and even have their hats shaped or curved to their preference. We’ve expanded into trading cards, which has become an exciting new category for us. Our goal is to make Lids a destination for both sports fans and collectors.
SGB: Acquirers in the retail space often close unprofitable locations. Has Ames Watson increased or decreased Lids’ net store count since the acquisition?
Berger: When we acquired Lids, the company operated roughly 800 stores. Today, that number has grown to around 1,200. The expansion includes major flagship locations, such as those on the Las Vegas Strip and at the American Dream Mall in New Jersey. We’ve also expanded our NBA Store footprint, which started in New York and now includes additional locations in LA, Houston, and the Mall of America in Minnesota. Each new store gives us an opportunity to bring the Lids experience to more fans and communities.
SGB: Are trends healthy in the cap or sports licensing space?
Berger: It’s been a complicated year for retail overall, but the hat and sports licensing space remains healthy. Sports have never been more culturally influential, and casualwear has become a staple of everyday life. Where people once owned one or two hats, they now have collections in different colors and silhouettes. Hats are now seen as a fashion accessory, not just team gear, and we offer more than 20 different hat styles so customers can find their exact fit and look. As a result, we’ve seen our customer base expand. More women are wearing hats as part of their personal style, and we are serving a wider age range than ever before, from kids to parents. This evolution shows how headwear has become a meaningful part of how people express themselves.
SGB: What’s the plan going forward for the Lids business?
Berger: We are continuing to modernize our stores while selectively exploring new formats and concepts. Growth is our main focus, both through physical expansion and through enhancing existing locations.
Trading cards are an area of opportunity for us, and our specialty concept, Lids HD, continues to expand. Lids HD is built around limited-edition drops and a more elevated retail experience, and we now have several of these stores operating successfully.
We also manage the NBA and NHL stores, which allows us to reach fans through premium, league-driven retail. Looking ahead, we plan to continue upgrading our stores, growing our specialty formats, and developing new concepts that bring even more excitement to the Lids brand.
Images courtesy Lids
