After success diversifying its fan apparel segment across categories in recent years, G-III Apparel Group Ltd. is looking to expand distribution rights both in the U.S. and overseas, said Wayne Miller, G-III’s COO and secretary, last week at ICR Xchange.
“This is a $100 million business at wholesale for us today and we will continue to grow nicely as we move forward,” said Miller of the business.
Team Sports includes G-III Sports by Carl Banks, including Starter satin jackets, as well as Touch by Alyssa Milano.
“Team Sports was part of the legacy coat business when it started,” said Miller. Today, coats represent 60 percent of its fan apparel business with knits accounting for 40 percent. A quarter of the business is women’s, up from nothing five years ago.
Miller said the NFL business is the “bigger part” of this business and is in the third year of a five-year license. The license covers mass and mid-tier on an exclusive basis in coats. It also covers sportswear, both men's and women's. Its offerings with the MLB, NHL and collegiate “are all pretty much equal in size,” he added.
G-III’s legacy business is coats and its offerings in that category include Calvin, Guess, Andrew Marc, Jessica Simpson, Tommy Hilfiger.
“We are experiencing a very good coat season,” said Miller. “We started out well. It has continued in October and November, and then for the rest of the year we think we are going to be positioned well to achieve our plan.”
Its other businesses include dresses under the Calvin, Eliza J, Ivanka Trump and Jessica Howard labels; Calvin sportswear; Vilebrequin in men’s; and the Wilsons and G.H. Bass retail operations. G-III didn’t provide an update to its fourth-quarter results.
Regarding acquisitions, Miller reiterated that the company is “looking for bigger opportunities,” with the sweet spot between $100 million and $500 million. It prefers a women’s brand, most likely in the U.S. although it could be an overseas brand that has the potential to expand in the U.S. Added Miller, “We can be patient because we believe that we have considerable organic growth that lies ahead for our company.”