G-III Apparel ‘Re-Thinking’ Private Label Business with Amazon

G-III Apparel is “re-thinking” its private label business (coats, dresses) with Amazon as the ecommerce retailer undergoes management changes, G-III’s Morris Goldfarb told analysts. The private label program is a “small” part of G-III total revenue, which relies heavily on Calvin Klein, Tommy Hilfiger, DKNY and Donna Karan brands. “The focus has been taken a little bit off private label” at Amazon until “they have stabilized their organization and it is clear to me what our expectations should be and can be,” Goldfarb said.  An Amazon spokesman couldn’t be reached for comment.  G-III also has private label programs with J.C. Penney, Macy’s and Nordstrom.

Meanwhile, the company expects to lose about $100 million in sales this year given Bon Ton Stores’ bankruptcy filing, Goldfarb said. Hardest hit will be the Calvin Klein brand, which nevertheless is expected to post $1.5 billion in total revenue this year, up from $1 billion in 2017. The Donna Karan and DKNY brands, which G-III acquired in 2016, recorded $230 million in net sales in 2017 and will increase to about $400 million this year, he said. G-III also doubled its sales of Tommy Hilfiger merchandise in 2017 to $275 million.

G-III’s net loss in Q4 ended Jan. 31 narrowed to $542,000 from $20.1 million a year earlier, when it had added costs tied to acquiring the Donna Karan and DKNY brands. Q4 revenue jumped 18.4% to $714.4 million.

Contact:

G-III Apparel, Morris Goldfarb, CEO, 212-403-0500, Morrisg@g-iii.com

Five Below Plans to Open 125 Stores This Year

Five Below plans to open 125 stores in 2018, including 15 locations in California and an entry into Arkansas, CEO Joel Anderson told analysts. The chain opened 103 in 2017, ending the year with 625 stores; it sees room for 2500 U.S. locations, an increase from an earlier forecast of 2,000. It also plans to start a store remodeling program in 2019, having revamped its first five stores last year.

The company’s net income rose 35.3% to $67.4 million in Q4 ended Feb. 3 on a 30.1% gain in revenue to $504.8 million.  It forecasts 20% annual revenue increases through 2020.

Sales of leisure products (toys, books, electronics), accounted for 50.1% of its $1.2 billion in revenue in the year ended Feb. 3, while fashion and home (t-shirts and home goods) generated 31.6% of the total, up slightly from 31.2%. Party and snack goods accounted for 18.3% of sales, down from 18.8% a year earlier.

Contact:

Five Below, Joel Anderson, CEO,215-546-7909

Jakks Special Committee to Review Meisheng Bid

Jakks Pacific says it has formed a special Board committee of its board to review the offer of Hong Kong Meisheng Cultural Co. to boost its stake in the company to 51% from 18% (Inside Licensing Feb. 26). The committee will negotiate with Meisheng and weigh other “potential strategic alternatives.” Meisheng said in January it plans to increase its stake in Jakks by buying shares at $2.95, a premium to the $2.19 it was trading at on Monday afternoon.  Jakks also is developing original IP as part of its Studio JP joint venture with Meisheng Cultural and Creative Corp. The venture has released “Constellation High” in China.

Contact:

Jakks Pacific, Stephen Bennett, Pres., 424-268-9444, sberman@jakks.net

Corona Licensee Earth Source Readies Limes

Grupo Modelo is reviving an earlier effort to apply the Corona brand to limes. Produce distributor Earth Source Trading will ship Corona branded limes in May, making them available individually, and in six packs and cases. Each lime, which Earth Source is sourcing from Mexico, will feature a Corona sticker. Joester Loria brokered the deal.

Contacts:

Earth Source Trading, William Ison, Dir. Business Development, 717-721-2589

Joester Loria Group, James Slifer, SVP Business Development, 212-683-5150, jslifer@tjlgroup.com

Canadian Retailer Arden Holdings to Add LaurDIY In-Store Format

Canadian retailer Arden Holdings will launch a multi-category LaurDIY in-store format in October, featuring the YouTube star’s licensed sleepwear (The Kersheh Group), stationery (C.R. Gibson) and loungewear, leggings and cosmetics bags (Mad Engine), says The Brand Liaison’s Steven Heller. Lauren Riihimaki, the person behind LaurDIY crafts brand, initially introduced sleepwear at the 400-store chain last December. Kersheh is readying a second line of sleepwear for delivery in May.

Contacts:

Arden Holdings, Sophie Beauchamp, SVP Marketing, 866-322-4442

The Brand Liaison, Steven Heller, Pres., 855-843-5424 x702, steven@thebrandliaison.com

C.R. Gibson, Abbey Blaszczyk, VP Marketing, 615-724-2900

The Kersheh Group, Allison Jurow, Senior Merchandising Dir., 800-829-6521

Mad Engine, Carolyn Foreman, VP Licensing, 858-558-5270 x8815, Carolyn@madengine.com

JD Sports Fashion Makes an Offer for Finish Line

UK retailer JD Sports Fashion has made an offer to buy athletic footwear and apparel retailer Finish Line for $558 million, in a bid to further extend its international business and seeking to buy a chain in which rival Sports Direct International also has a stake. JD Sports owns 9.9% of Finish Line; meanwhile, its major UK rival, Sports Direct, owns 32%. Finish Line, which operates more than 900 stores including an in-store format at Macy’s, would give JD Sports entry into the U.S., following its first moves outside Europe during the past two years to Australia and Malaysia.

Contacts:

JD Sports Fashion, Brian Small, Chief Financial Officer, +44 161 767 1000

Finish Line, Edward Wilhelm, Chief Financial Officer,317-899-1022

Executives

Cory Waisner, Chief Entertainment Officer at The Brand Liaison, named also as the company’s Executive Director of Manufacturer Representation and a member of its strategic management group… Cindy Elfenbein, ex-Zag Media, named VP Global Consumer Products at Genius Brands International…Anna Bakst, ex-Michael Kors, joins Tapestry as CEO-Brand President for Kate Spade, replacing Craig Levitt… Mark Sok, National Sales Manager at Pets First Inc., departs company… Tom Vellios, Co-Founder and Executive Chairman at Five Below, shifts to Chairman…. Named to new LIMA France office: Laurent Taieb is Chairman; Vice Chairpersons are Marina Narishkin, Director, TFI Licenses; Marie-Laure Marchand, SVP Global Consumer Products, Xilam;  and Jerome Le Grand, General Manager Licensing, Retail and E-Commerce at Walt Disney France. Treasurer is Valerie Rolandex-Barrios, Director of Licenses and Partnerships at StudioCanal….  Denise Godreau departs as Seaworld Entertainment Chief Marketing Officer

Contacts:

The Brand Liason, Cory Waisner, Executive Dir. of Manufacturer Representation, 855-843-5424, cory@thebrandliaison.com

Five Below, Tom Vellios, Chairman,215-546-7909

Genius Brands International, Cindy Elfenbein, VP Global Consumer Products, 310- 273-4222, cindy@gnus.com

LIMA France, Laurent Taieb, Chairman, +33 660678145, ltaieb@licensing.org

Tapestry, Anna Bakst, CEO-Brand President for Kate Spade, 212-594-1850