G-III Apparel Group, Ltd. (Nasdaq: GIII) today announced that it has acquired certain assets of Jessica Howard, Ltd. and Industrial Cotton, Inc., two affiliated companies. Jessica Howard designs and markets moderate and better dresses under the Jessica Howard and Eliza J. brands, as well as under private label programs. Industrial Cotton is a mid-tier provider of a broad assortment of junior denim products. The Company acquired the assets for a total purchase price of approximately $8.1 million.
Morris Goldfarb, Chairman and Chief Executive Officer, commented, “We are excited to accelerate the strategic development of our Company through this acquisition. We will gain some immediate scale in dresses and believe there is an excellent opportunity for us to grow this business through adding new dress licenses and expanding the private label business. We will also gain added expertise in sportswear through the addition of Industrial Cotton.”
The Company noted that Jessica Howard has a well-established base of business in better retailers such as Macy’s, Dillard’s, Coldwater Creek and Nordstrom, and Industrial Cotton is distributed in the mid-tier channel with customers such as Sears, Kohls, Belk, and JCPenney.
Mr. Goldfarb continued, “We believe that we can expand Jessica Howard and Industrial Cotton’s customer base and revenue opportunities and can significantly reinforce this business with improved sourcing, better operational controls, and more efficient financial management. At the same time, the additional infrastructure and scale which these businesses will bring to our Company should prove meaningful.”
About G-III Apparel Group, Ltd.
G-III Apparel Group, Ltd. is a leading manufacturer and distributor of outerwear and sportswear under licensed brands, its own brands and private retail labels. G-III has fashion licenses, among others, under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Nine West, Ellen Tracy, House of Deréon, IZOD and Tommy Hilfiger labels, and sports licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Louisville Slugger, World Poker Tour and over 100 U.S. colleges and universities. G-III-owned labels include, among others, Marvin Richards, G-III, Black Rivet, Siena Studio, Colebrook, G-III by Carl Banks, Winlit, NY 10018 and La Nouvelle Renaissance.
Statements concerning the Company’s business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are “forward-looking statements” as that term is defined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, reliance on licensed products, reliance on foreign manufacturers, the nature of the apparel industry, including changing customer demand and tastes, seasonality, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions and general economic conditions, as well as other risks detailed in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.
