G-III Apparel Group, Ltd. Announces China Joint Venture for Launch of Women’s Calvin Klein Performance Retail Stores in China and Hong Kong
NEW YORK--(BUSINESS WIRE)-- G-III Apparel Group, Ltd. (GIII) today announced that it has entered into a joint venture agreement with China Ting Group Holdings Limited to open and operate Calvin Klein Performance retail stores in China and Hong Kong, under the Calvin Klein Performance store license previously granted to G-III by Calvin Klein, Inc., a wholly owned subsidiary of PVH Corp. (NYSE: PVH). G-III will retain 51% ownership of the joint venture which expects to begin operating retail locations in major Chinese markets starting in Fall 2012.
Morris Goldfarb, Chairman and Chief Executive Officer of G-III Apparel Group, commented, As the pre-eminent global fashion brand, Calvin Klein is well positioned for further success in the Performance Apparel arena. With strong relationships and an excellent track record, G-III and China Ting are well able to serve the market opportunity in China. China Ting has a precise understanding of what is necessary to successfully penetrate one of the most dynamic markets in the world. We are excited to take this step and further our strategic initiatives to diversify our company through global opportunities.
Ting Hung Yi, Chief Executive Officer of China Ting Group Holdings Limited commented, We are very pleased to partner with a strong and well-respected organization like G-III. We believe that the womens Calvin Klein Performance apparel will resonate with a wide range of female consumers throughout China. We are confident that we can leverage our expertise to build a meaningful business for this iconic, global brand.
Tom Murry, President and Chief Executive Officer of Calvin Klein, Inc. stated, "G-III has demonstrated that they understand our consumer and can steward the brand across a number of important categories. We are excited to see G-III build upon the work they have done in the United States to further expand Calvin Klein Performance at retail in China and Hong Kong."
The Company noted that the products offered will be the womens active performance wear apparel in the athletic and performance wear categories developed and produced under G-IIIs license from Calvin Klein, Inc. utilizing materials and designs that enhance the active lifestyle including yoga, running, tennis, and biking. The line features items rendered in performance fabrics and finished with detailing appropriate for each of those classifications. The products to be offered in the retail stores in China and Hong Kong will include active performance wear pants, capris, shorts, tank tops, t shirts, and hooded jackets.
As previously announced, G-III entered into a womens wholesale Calvin Klein Performance license in 2007. In December 2011, the Company announced that it had entered into a retail store agreement with Calvin Klein, Inc., to open Calvin Klein Performance stores and shop in shops for the sale of womens Calvin Klein Performance apparel in the United States, China, and Hong Kong. G-III also has rights to expand to additional countries throughout the world. The first Calvin Klein Performance store opened in the United States last month at Scottsdale Quarter in Scottsdale, Arizona.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear and women's suits, as well as handbags and luggage, under licensed brands, our own brands and private label brands. G-III sells outerwear and dresses under our own Andrew Marc, Marc New York and Marc Moto brands and has licensed these brands to select third parties in certain product categories. G-III has fashion licenses under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Vince Camuto, Nine West, Ellen Tracy, Tommy Hilfiger, Kensie, Levi's and Dockers brands and sports licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Touch by Alyssa Milano and more than 100 U.S. colleges and universities. Our other owned brands include Jessica Howard, Eliza J, Black Rivet, G-III, G-III Sports by Carl Banks and Winlit. G-III also operates outlet stores under our Wilsons Leather and Andrew Marc names, is a party to a joint venture that operates outlet stores under the Vince Camuto name, and operates retail stores under the Calvin Klein Performance name.
Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world. It designs and markets womens and mens designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide. Brands/lifestyles include Calvin Klein Collection, ck Calvin Klein, Calvin Klein, Calvin Klein Jeans and Calvin Klein Underwear. Product lines under the various Calvin Klein brands include womens dresses and suits, men's dress furnishings and tailored clothing, mens and women's sportswear and bridge and collection apparel, golf apparel, jeanswear, underwear, fragrances, eyewear, womens performance apparel, hosiery, socks, footwear, swimwear, jewelry, watches, outerwear, handbags, small leather goods, and home furnishings (including furniture). For more information, please visit calvinklein.com.
PVH Corp., one of the worlds largest apparel companies, owns and markets the iconic Calvin Klein and Tommy Hilfiger brands worldwide. It is the worlds largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, Tommy Hilfiger, IZOD, ARROW, Bass and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY, Ike Behar and John Varvatos. For more information, please visit pvh.com.
China Ting Group Holdings Ltd. is a leading fashion retail and manufacturing group headquartered in Hong Kong with fully vertical textile production operations in Hangzhou, China. Listed on the Hong Kong Main Stock Exchange since 2005 (code 3398), the Group today has sales offices worldwide - USA, Europe, Hong Kong, China - and a strong nationwide network of retail distribution stores in China for their own brands (Finity, Elanie, Riverstone) as well as licensed brand Max Studio. A pioneer in international brand distribution within China, the Group opened its first FINITY, USA, store in 1998 and has, since, seen its retail business expand and diversify to become one of China's more successful brand retailing groups today.
Statements concerning G-IIIs 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 product, reliance on foreign manufacturers, risks of doing business abroad, the current economic and credit crisis, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business; 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 G-IIIs filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release.
James Palczynski, 203-682-8229
G-III Apparel Group, Ltd.
Wayne S. Miller, 212-403-0500
Chief Operating Officer
Source: G-III Apparel Group, Ltd.Copyright Business Wire 2012