Karl Lagerfeld Bet on North American Market
G-III Apparel Group and Karl Lagerfeld Group announce Karl Lagerfeld North America Joint Venture. Expect Spring 2016 launch of women's apparel and handbags.
G-III Apparel Group, Ltd. (NasdaqGS:GIII) and Karl Lagerfeld Group BV, the parent company of the Karl Lagerfeld global brand, announced that they have entered into a joint venture agreement for the development of the iconic designer’s namesake brand in the North American market.
Under the terms of the agreement, Karl Lagerfeld Group BV has assigned the Karl Lagerfeld marks for all consumer products (except eyewear, fragrance, cosmetics, watches, jewelry, and hospitality services, all of which remain exclusively with Karl Lagerfeld Group BV) and apparel in the United States and Canada. In addition, the joint venture will be granted an exclusive, irrevocable, royalty-free license to use the marks in Mexico with respect to the same products.
G-III acquired a 49% interest in the joint venture. G-III is also the first licensee of the joint venture and has been granted a five year license (with two renewals of five years each) for women’s apparel, women’s handbags, and men’s outerwear. The joint venture expects to grant additional category licenses over time to G-III and/or to other parties.
Morris Goldfarb, G-III’s Chairman, Chief Executive Officer and President, said, «Karl Lagerfeld has a rich history and has truly captured and captivated the imagination of women and men around the world. We are excited to have formed this partnership and are poised to launch this iconic fashion brand to a new generation of consumers. We are looking forward to shipping product for the Spring 2016 season and believe we can build and grow a meaningful business for Karl Lagerfeld product.»
Pier Paolo Righi, CEO and President of Karl Lagerfeld Group BV, said, «We continue to execute ambitious plans and a global growth strategy for the Karl Lagerfeld business. The North American market forms an important part of these plans. G-III is a true leader in this market and has demonstrated excellence across a range of businesses. We believe that these first categories will quickly form the cornerstone of our North American business. We are excited for our future and to now add G-III’s value-added capabilities across a number of important categories.»