G-III will be buying the Donna Karan brand for $650 million. LVMH has owned DKNY brands since 1996. The last brand that LVMH sold was Christian Lacroix in 2005. In a statement, cialis Antonio Belloni, LVMH group managing director, said “We believe the DKNY brand has a dynamic position in the market, and when G-III approached us about acquiring the brand, we concluded that the time was right and that G-III was the right steward going forward.” He also added that G-III “has the expertise and capabilities to broaden the brand’s distribution and take it to its next level of success.” G-III Apparel Group currently owns brands like Vilebrequin, Andrew Marc, and Marc New York, along with having licensing deals with Tommy Hilfiger, Calvin Klein, and Karl Lagerfeld among many others. “Donna Karan International is an iconic global fashion company,” said Morris Goldfarb, chairman/chief executive officer and president of G-III. “Its lifestyle aesthetic resonates well with consumers throughout the world. We are excited to build upon its strong foundation as we seek to capitalize on a significant market opportunity. Donna Karan brings increased scale and diversification, while providing incremental growth on top of our portfolio of some the best fashion brands in the world. We believe we are well positioned to create and sustain additional value for our shareholders, partners, and customers.” John Guy, an analyst at MainFirst Bank says, “the sale is a good deal for LVMH, considering the brand has been under considerable pressure, not only in the U.S. but in Europe over the past 12 to 18 months.” G-III said it expects to weigh in on profits in the fiscal year through January 2018, and boost earnings from then on.
– Kareshma Singh