G-III Apparel expects two deals signed with the NFL to revive growth in its sports licensing business. At the Cowen and Company Consumer Conference, Wayne Miller G-III's COO, said the company has signed a licensing deal to bring NFL outerwear to Walmart starting Fall 2010. It also signed a new sportswear deal with the NFL that also starts shipping in Fall 2010.
Miller said the sports franchise business in general has been flat to down and down over the last two years, and “this is the first time now that we are going to get some good growth in this business.”
Also supporting the sports business is continued growth on the women's side with the Touch by Alyssa Milano collection.
Bigger drivers of G-III's strong growth since 2005 has been dresses and sportswear. The company moved into dresses in 2006 by attaining the Calvin Klein license and is likely the number two department store resource in dresses behind Jones Apparel. Also performing well in dresses is the Jessica Simpson label, introduced in Spring 2009 and now in 400 doors, as well as Andrew Marc, which debuted in Fall 2009. The sportswear business has been led by Calvin Klein, which was launched in 2008 and could be a $200 million business in the next few years. Meanwhile, coats, G-III's legacy business, is expected to see mid-single digit growth going forward, helped by the signing of a Tommy Hilfiger license.
