Vera Bradley Ends Licensing in Japan

Vera Bradley is ending a licensing agreement with apparel supplier Look Inc. in Japan in mid-2018 as it sharpens its focus on its U.S. business, CEO Rob Wallstrom told analysts. The company signed a five-year agreement with Look Inc. and Mitsubishi Corporation Fashion Co. in 2014, the latter to handle distribution of the brand in Japan. Despite ending the deal, Vera Bradley continues to “believe there are opportunities” for international expansion “in the long-term,” Wallstrom said. Vera Bradley doesn’t expect to take any “material” charges related to terminating the pact before its expiration in 2019, says a Vera Bradley spokeswoman.

Meanwhile, the company expects to close about 50 of its 113 full-line stores by 2020, including 3-4 by year-end, Wallstrom said. The company also has scaled back the number of specialty stores selling its products, ending the fiscal year in January with 2,400, down from 2,700 in 2015. At the same time, it has sought to bolster both its online and factory outlet businesses as well as licensing. It has signed five agreements, the last of which with CID Resources will deliver branded medical uniforms in spring 2018 (Inside Licensing Sept. 7).

Meanwhile, Vera Bradley’s profit narrowed to $359,000 in Q3 ended Oct. 28 from $8.7 million a year earlier as the company took $11.5 million in charges, including $5.8 million for its stores. Vera Bradley’s Q3 revenue fell 9.9% to $114 million as sales through its stores dipped 23.7% to $30.9 million. Same-store sales declined 7.4%.

Contact:

Vera Bradley, Stephanie Lawrence, VP Licensing, 260-207-5976, slawrence@verabradley.com

Dollar General to Open 900 Stores in 2018

Dollar General pared back the number of new stores for 2018 to 900 from 1,285 this year, focusing instead on remodeling 1,000 locations, company executives told analysts. The 2018 openings will include new Dollar Plus and DGX stores, the latter featuring 3,600 sq. ft. locations for urban markets. Dollar General stores average about 7,300 sq.ft. The company’s Q3 net income increased 7.3% to $252.5 million as revenue rose 11% to $5.9 billion on a 4.3% gain in same-store sales.

Contact:

Dollar General, John Garratt, Chief Financial Officer, 615-855-4000

G-III Apparel Strikes Licensing Deals for DKNY, Donna Karan Brands

G-III Apparel Group has struck a series of licensing deals for the DKNY and Donna Karan brands, which it acquired last year. The Jewelry Group launched an exclusive 120-piece jewelry collection at Macy’s. G-III also has licensing deals for children’s apparel and women’s belts and its joint venture with Amlon Capital is expected to introduce DKNY and Donna Karan men’s and women’s apparel and accessories in China. The joint venture also has licensing rights for handbags and luggage under an agreement that takes effect Jan. 1.

Meanwhile, G-III recently renewed licensing pacts for the Levi’s (men’s and women’s outerwear) and Docker’s (outerwear) brand for four years and extended agreements with the National Basketball Association (jackets) and Vince Camuto (dresses) through 2020, the company said in an SEC filing.

G-III also has rebranded eight Wilsons Leather stores as Karl Lagerfeld Paris as part of a broader restructuring of its retail store business. G-III is cutting the number of Wilsons Leather and G.H. Bass stores to 285 by fiscal year-end in January from 314 on Oct. 31.

Contacts:

G-III Apparel Group, Morris Goldfarb, CEO, 212-403-0500

The Jewelry Group, Jennifer Senenko, SVP Merchandising and New Business Development, 844-854-8326