Adding to a diverse portolio, G-III Apparel Group Ltd. announced an agreement on Thursday to purchase European luxury fashion brand Sonia Rykiel.
Designer Sonia Rykiel is known as one of the leading figures of Parisian fashion who created a well-known brand “that captured the spirit of the modern woman,” G-III said. The company said it plans to accelerate the relaunch of the brand, primarily in Europe, for fall 2022, with collections across multiple categories. The transaction is expected to close by the end of October.
“We are extremely pleased to purchase the Sonia Rykiel brand, which further enables us to expand into the luxury space,” said Morris Goldfarb, G-III’s chairman and CEO. “We believe there is significant opportunity to unlock the untapped potential of this brand as we look to accelerate our global reach. We will leverage the existing executive management team and infrastructure based in Europe, as well as G-III’s supply chain expertise to scale and grow the Sonia Rykiel business across apparel, accessories and numerous other lifestyle categories.”
G-III’s substantial portfolio of more than 30 licensed and proprietary brands is anchored by five global power brands–DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. G-III’s owned brands also include Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc and Marc New York.
“We are proud to have been a part of this brand, which has a deep French heritage and to be the drivers behind its relaunch,” Eric and Michael Dayan, Sonia Rykiel’s current owners, said. “We are thrilled to have found G-III, a true apparel and accessory powerhouse with a strong portfolio of globally recognized brands, as the new owners and stewards of the Sonia Rykiel brand.”
“With G-III’s dominance in a diversified range of lifestyle categories, along with its well-established and broad range of retail partners, we see a bright future for the growth of the Sonia Rykiel brand,” they added. “We have confidence and peace of mind that G-III will elevate the iconic Sonia Rykiel brand to its global potential.”
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G-III also has fashion licenses under the Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s and Dockers brands. Through its team sports business, G-III has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and over 150 U.S. colleges and universities.
G-III also has stores under the DKNY, Karl Lagerfeld Paris and Vilebrequin monikers, digital channels for the DKNY, Donna Karan, Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass.
A purchase price was not revealed for the Sonia Rykiel brand. For the second quarter ended July 31, G-III’s net sales increased 62.5 percent to $483.1 million. Net income for the quarter was $19.2 million compared to a net loss of $15 million in the prior-year period.