Mar 27, 2017
DKNY picks Macy's to be its exclusive retailer in the US
Mar 27, 2017
Beginning in February 2018, Macy’s will serve as the exclusive US retailer for DKNY. As per the partnership, the retail chain will carry DKNY women’s apparel, handbags and footwear, as well as women’s and men’s swimwear. In addition, Macy’s and DKNY will partner on exclusive products and will open DKNY shop-in-shops in Macy’s stores.
G-III will continue to operate DKNY stores and the brand website, and the company will maintain DNKY’s international license agreements, partnerships and distributors.
"We have worked well with Macy’s in the past with respect to our portfolio of brands and we are confident that this partnership with Macy’s will help DKNY flourish and capture market share,” said Morris Goldfarb, Chairman and CEO of G-III.
Donna Karan International, which is comprised of the Donna Karan and DKNY brands, was acquired by G-III Apparel from LVMH for $650 million. Following the acquisition, Creative Chiefs Dao-Yi Chow and Maxwell Osborne and CEO Caroline Brown stepped down from their roles.
The company announced on Monday the DKNY relaunch in mid 2017. Goldfarb believes that DKNY can achieve annual sales of $1 billion, which will lead the company closer to its goal of $5 billion in annual sales in 5 years.
Partnering with Macy’s may be a risky move for G-III when considering the retailer’s sales woes. In February, Macy’s reported its eighth straight quarterly decline and a decrease in fourth quarter net income to $475 million from $544 million. The company’s struggles are so apparent that it was rumored to be in acquisition talks with Saks’ parent company Hudson’s Bay Company.
Macy’s is under new leadership with new CEO Jeff Gennette, who has been with Macy’s for 30 years. Gennette shared plans to return the company back to profitability, which includes reducing its promotional activity, strengthening the private label, and introducing technology to simplify shopping among others.
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