Formerly | G&N Sportswear, G-III Leather Fashions, Inc |
---|---|
Company type | Public |
Nasdaq: GIII S&P 600 component | |
Industry | Fashion, apparel, accessories |
Founded | 1956 |
Founder | Aron Goldfarb |
Headquarters | New York City, U.S. [1] |
Key people |
|
Products | Apparel and accessories |
Revenue | US$3.23bn (FY 2023) |
Number of employees | 3,600 full time; 1,100 part-time [4] (2023) |
Website | giii |
G-III Apparel Group is an American clothing company that designs, manufactures, markets, and sells women's and men's apparel with a global portfolio of licensed, owned, and private label brands, including DKNY, [5] Donna Karan, Karl Lagerfeld, Calvin Klein, Tommy Hilfiger, Vilebrequin, Nautica, Halston, G.H. Bass, Levi's, Champion, Major League Baseball, National Basketball Association, National Football League, and National Hockey League.
The company was founded in New York's Garment District in 1956 by Aron Goldfarb, a Polish-born Holocaust survivor. [6] In 1972 Goldfarb's son, Morris, joined the company, which was then known as G&N Sportswear [7] and specialized in leather outwear. [8] Morris immediately helped the company diversify and expand its sourcing. [9]
In 1974 the company was reorganized as G-III Leather Fashions, Inc. [10] In 1981, G-III launched its Siena Leather division, which offered more fashionable women's leather apparel. [11] In 1986 the company was generating revenues of $20 million, [12] and by 1988 G-III was one of the largest importers and wholesalers of leather clothing in the United States. [13]
In 1988 G-III partnered with football player Carl Banks and reached a licensing deal with the National Football League to design and manufacture leather team jackets. [14]
In 1989 G-III's revenues were nearly $100 million [15] and the company operated a branch office in Asia. [16] That same year, G-III became a publicly traded company, listed as G-III Apparel Group, Ltd. [17]
In 1993, G-III extended its licensing deal with the National Football League. [18] Over the next several years, G-III reached similar deals with NASCAR, [19] Major League Baseball, National Hockey League, National Basketball Association, and major colleges. [20]
In 1995 G-III reached a licensing agreement with Kenneth Cole to produce and market outerwear. [21] This agreement was followed by similar licensing arrangements [22] with other brands. [23]
In 2002 Morris Goldfarb's son, Jeffrey Goldfarb, joined the company. [24]
G-III completed a series of acquisitions and licensing deals in the mid-2000s that added prominent brands to the company's portfolio while expanding production capabilities. [25] In 2005 G-III acquired two privately-held outerwear businesses, [26] Marvin Richards and Winlit, that held licenses for apparel produced under different brand names, including Calvin Klein and Tommy Hilfiger. [27] The company then began to diversify its offerings beyond outerwear and into new apparel categories like women's dresses, sportswear, and performance wear. [25] In 2007, the company acquired the Jessica Howard and Eliza J brands. [28]
In 2008, G-III acquired assets from retail outlet chain Wilsons Leather. [29] These assets included 116 outlet stores, online retail operations, and a distribution center, and the deal marked the company's first large-scale venture into retail. [30] That same year, G-III acquired the company Andrew Marc. [31]
Further acquisitions in the 2010s [32] and 2020s [33] increased G-III’s portfolio of owned brands and allowed the company to expand globally while increasing its direct-to-consumer distribution channels. [34]
In 2012 G-III acquired the luxury swimwear brand Vilebrequin, [35] which became the first international owned brand in G-III's portfolio. [36] The following year it acquired footwear brand G.H. Bass. [37] In 2015, G-III entered into a joint venture with another luxury brand, Karl Lagerfeld, to create and launch the Karl Lagerfeld Paris label in North America. [38] The company acquired Donna Karan International, the parent company of Donna Karan and DKNY, in 2016. [39]
G-III acquired French fashion brand Sonia Rykiel in 2021. [40]
In 2022, G-III acquired the remaining stake in Karl Lagerfeld. [41]
In 2023, the company announced licensing deals to design, manufacture, and distribute Nautica [42] and Halston. [43]
The company designs, [44] sources, [45] manufactures, [44] markets, [21] and sells [46] women's and men's clothing, outerwear, hats, jewelry, and other accessories under licensed, owned, and private label brands. [47] The company also licenses its owned brands for other products [48] and partnerships. [49]
G-III is headquartered in New York and has international offices in Canada, China, Italy, Paris, the Netherlands, and Switzerland. [50] G-III distributes its products through freestanding stores and shops along with international digital channels. [51] The company also sources and manufactures products with global partners. [52]
Morris Goldfarb is the chief executive officer of G-III. [53]
G-III owns and licenses more than 30 global fashion brands, [54] and maintains licensing agreements with major U.S. sports leagues and more than 150 U.S. colleges and universities. [54] [55]
Some of the company's brand ownership and licensing relationships are summarized below:
Some of G-III's factories, producing brands such as Andrew Marc and Ivanka Trump, have been accused of flouting serious animal or human welfare principles. [80] [81] [82] An audit by the Fair Labor Association of a G-III contracted Chinese factory in October 2016, found excessive overtime which violated Chinese law, low wages, and workspace safety concerns. [83] A 2017 report by the Guardian on a contracted factory in Indonesia found extremely low wages and unpaid overtime. [84]
Karl Otto Lagerfeld was a German fashion designer.
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1956: Aron Goldfarb migrates to the U.S. and establishes G&N Sportswear, now known as G-III Apparel Group Ltd., as an outerwear company.
Aron Goldfarb was running a leather apparel business, opened in 1956 in New York City's garment district, that specialized in men's bomber jackets when his 22-year-old son Morris joined the company in 1972.
1972: Under son Morris Goldfarb, the company begins diversifying by expanding its sourcing; G-III is one of the first American firms to import outerwear from South Korea.
Morris Goldfarb augmented the business (which was reorganized in 1974 as G-III Leather Fashions, Inc.) with overseas production facilities, selling moderately priced women's leather coats and jackets under the G-III label.
The company expanded its product lines and began selling higher priced, more fashion-oriented women's leather apparel under the Siena label in 1981.
By 1986 G-III was turning a modest profit on revenues of $20 million.
By 1988 G-III was among the largest, if not the largest, independent importer and wholesaler of leather apparel in the United States.
'I put together my first sample line back in 1988, showed it around and received a great response. I was granted a limited license from the National Football League at that time. Since then, it has grown into something full scale, G-III Sports by Carl Banks.'
By 1989, revenues totaled nearly $100 million, and G-III was ready to tap the public markets.
Aside from its financial power, G-III has an industry following and relationships not easily quantified. G-III operates a 13-person branch office in Seoul, South Korea, to act as an intermediary between G-III and the various sources throughout Korea and Hong Kong. These loyalists in Korea are helpful in keeping G-III abreast of its competition.
1989: G-III Apparel Group Ltd. incorporates in Delaware and becomes a publicly traded firm.
The year 1993 marked G-III's entry into the highly lucrative sports merchandise arena, when the company began to produce and distribute outerwear carrying the National Football League (NFL) logo.
'I think many of the sports athletic producers are turning to outerwear because outerwear is no longer seen just as a functional piece of clothing,' said Jeanette Nostra, president of G-III Apparel Group, which produces leather and cloth outerwear for the NFL, NHL and NASCAR.
G-III currently has fashion licenses with Kenneth Cole Productions, Nine West Group and Tommy Hilfiger, a distribution agreement for Caterpillar young men's apparel, and licensing agreements with the National Football League, National Hockey League, National Basketball Association, Major League Baseball and more than 20 universities nationwide.
G-III Apparel Group and Kenneth Cole Productions are teaming up for a new collection of leather and cloth outerwear. The licensing deal, announced Monday, calls for G-III to produce and market three labels bearing the Kenneth Cole name: Collection, New York and Reaction.
Slowing growth in the shoe business has prompted Nine West to join other brands in a licensing frenzy. The company already licenses sunglasses, socks, tights and jewelry. Friday it announced a deal with G-III Apparel Group (GIII:Nasdaq), which will develop Nine West outerwear.
Cole-Haan and G-III Apparel Group said Monday they had entered into a licensing agreement for men's and women's leather and cloth outerwear and leather apparel bearing the Cole-Haan label. This is the license for Cole-Haan, which makes men's and women's footwear and accessories. The outerwear line will make its debut for fall 2000 at all Cole-Haan retail stores and at select stores with which Cole-Haan has an existing relationship, the companies said. Under a multiyear contract, G-III will handle all aspects of manufacturing, distribution, sales and marketing of the new line under the direction of Cole-Haan.
Jeffrey Goldfarb is Director of Strategic Planning at G-III Apparel Group, which designs, manufactures, imports, and markets men and women's apparel. He joined G-III in 2002 and was named to his current position in 2004.
The company's acquisition earlier this year of Winlit Group brought Guess, Tommy Hilfiger and Ellen Tracy on board, and the purchase of Marvin Richards Ltd. added even more luster with Calvin Klein and St. John Knits. G-III, meanwhile, also has the nameplates for Sean John, Kenneth Cole, Cole Haan, Izod, Jones New York, Donald Trump, Pacific Trail and Nine West, in addition to its sports licensing division dating back to 1988, which includes the NFL, Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League.
2007: Acquires Jessica Howard and Eliza J, which gives it a significant place in the dress market.
By purchasing assets of Wilsons The Leather Experts, G-III gained 116 retail outlet stores in 35 states, an e-commerce operation, and a distribution center. This was the company's first large-scale venture into retail operation; today, the Wilsons Leather stores (now numbering 119) carry both the Wilsons Leather brand and many of G-III's leatherwear brands..
But Morris Goldfarb, G-III's longtime chief executive officer, had seen the handwriting on the wall and had already begun diversifying the company's portfolio and focusing its efforts on its owned brands, including Vilebrequin, which it acquired in 2012, and Sonia Rykiel, which it bought in 2021.
The deal will make the company the brand's sole owner, and will include Karl Lagerfeld's existing 10 per cent stake in its established joint venture in China. It will allow G-III to expand the fashion brand's presence in a number of geographic regions through partner-operated channels spanning digital, retail and licensing opportunities, G-III said.
Analyst Eric Beder of Brean Murray, Carret & Co. called the deal a positive in that it adds an international owned brand to the G-III portfolio, which is heavily concentrated in domestic licensed brands, particularly outerwear.
G-III will design, produce and distribute all Halston categories and products — something that plays to strengths of the company, which topped first-quarter earnings expectations and upped its outlook for the year.
Almost immediately, G-III expanded its sourcing, becoming one of the first companies to import outerwear from South Korea.
This New York company began life as an outerwear wholesaler but in recent years has grown rapidly by licensing high profile apparel brands such as Calvin Klein and Tommy Hilfiger. It's also moved into retailing by acquiring the Wilsons Leather and G.H. Bass chains.
Our retail operations segment consists primarily of direct sales to consumers through our company-operated stores and through digital channels.
G-III also arranges production from independent manufacturers in China, Vietnam, Indonesia, India, Bangladesh and Central and South America. Vilebrequin's products are made in Bulgaria, Tunisia and Morocco
G-III has been a licensee of the NFL since 1988.
'I put together my first sample line back in 1988, showed it around and received a great response. I was granted a limited license from the National Football League at that time. Since then, it has grown into something full scale, G-III Sports by Carl Banks.'
The company's acquisition earlier this year of Winlit Group brought Guess, Tommy Hilfiger and Ellen Tracy on board, and the purchase of Marvin Richards Ltd. added even more luster with Calvin Klein and St. John Knits. G-III, meanwhile, also has the nameplates for Sean John, Kenneth Cole, Cole Haan, Izod, Jones New York, Donald Trump, Pacific Trail and Nine West, in addition to its sports licensing division dating back to 1988, which includes the NFL, Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League.
This line debuted in 1996, the year G-III also entered into an agreement with the National Hockey League to market a line of outerwear apparel with the NHL team logos.
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