G Iii Apparel Group

G-III Apparel Group, Ltd. designs, manufactures, and markets a range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits, and women’s performance wear, as well as luggage and women’s handbags, small leather goods, and cold weather accessories. The company sells its products under its own proprietary brands, licensed brands, and private retail labels. The company sells swimwear, resort wear, and related accessories under its own Vilebrequin brand. It also sells various apparel products under its other owned brands, which include Andrew Marc, Marc New York, Jessica Howard, Eliza J, and Black Rivet. The company has licenses to produce branded fashion apparel under various brands, including such brands as Calvin Klein, Kenneth Cole, Guess?, Cole Haan, and Tommy Hilfiger. In its team sports business, the company has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Touch by Alyssa Milano, and approximately 100 U.S. colleges and universities. The company also works with a group of retailers, such as JC Penney, Express, and Aeropostale, in developing private label product lines. It provides apparel under recognized brands to a cross section of major retailers, such as Macy’s, Bloomingdale’s, Nordstrom, Neiman Marcus, Saks Fifth Avenue, Lord & Taylor, The Bon-Ton Stores, Dillards, JC Penney, Belk, and Kohl’s. It distributes its products through a mix and various retailers at various price points, as well as through its own retail stores. As of January 31, 2013, the company operated 218 retail stores, of which 145 are retail stores operated under the Wilsons Leather name, 4 are retail stores operated under its Andrew Marc brand and 63 are Vilebrequin retail stores. Its Wilsons and Andrew Marc stores are operated as outlet stores. The company also operates retail stores under the licensed Calvin Klein Performance brand of which two are located in the United States and four are located in China. The company’s licensed apparel consists of both women’s and men’s products. Its proprietary branded apparel also consists of both women’s and men’s products. The Andrew Marc line of women’s and men’s luxury apparel is sold to upscale department and specialty retail stores. The Marc New York line of women’s and men’s outerwear is sold to upper tier stores. The Jessica Howard label is a dress line that sells to department stores, specialty stores, and catalogs. Eliza J is a dress line that sells to department and specialty stores. The Black Rivet line of apparel consists of women’s and men’s outerwear. The company sells men’s team sports-related apparel under its G-III Sports by Carl Banks label. Segments The company operates through three segments: Licensed Products, Non-Licensed Products, and Retail Operations. Licensed Products This segment includes the sale of products under brands licensed by the company from third parties. Non-Licensed Products This segment includes the sale of products under the company’s own brands and private label brands, as well as of the Vilebrequin business that it acquired in 2012, including the retail operations conducted by Vilebrequin. Vilebrequin is a provider of status swimwear, resort wear, and related accessories. Vilebrequin sells its products through a network of company owned and franchised specialty retail stores and shops, as well as through select wholesale distribution. Retail Operations This segment consists of the company’s Wilsons retail stores, and various Andrew Marc retail stores and Calvin Klein Performance stores. Customers The company’s products are sold to approximately 2,900 customers, including a cross section of membership clubs, such as Costco and Sam’s Club. The company’s products are sold primarily to department, specialty, and mass merchant retail stores in the United States. Its customers range from national and regional chains to small specialty stores. Its customers include the Marmaxx Group, which includes sales to the T.J. Maxx and Marshalls store chains. Marketing and Distribution The company also distributes its products through its retail stores and through its Wilson’s Leather, Andrew Marc, and Vilebrequin Websites. It also markets its products in Canada, Europe, and the Far East. Its products are sold primarily through a direct sales force. Growth Strategy The company’s growth strategy is to execute diversification initiatives; continue to improve its apparel business; add new product categories; and seek attractive acquisitions. Seasonality The company sells its products throughout the year, net sales in the months of July through November accounted for approximately 58% of its net sales in the year ended January 31, 2013. Its Wilsons retail business is also highly seasonal, with the third and fourth fiscal quarters accounting for a majority of its sales and operating income. Trademarks The company owns various proprietary brands that it uses in connection with its business and products, including Vilebrequin, Andrew Marc, Marc New York, Jessica Howard, Eliza J, Black Rivet, Marvin Richards, Winlit, G-III, and G-III Sports by Carl Banks. History G-III Apparel Group, Ltd. was founded in 1956.

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