G-III Apparel Group Ltd has announced its agreement to purchase European
luxury fashion brand Sonia Rykiel, with the transaction expected to close by the end of October 2021.
Why is G-III Apparel Group Ltd purchasing Sonia Rykiel?
G-III plans to accelerate the relaunch of the brand primarily in Europe, for the fall of 2022, with collections across multiple categories.
“We are extremely pleased to purchase the Sonia Rykiel brand which further enables us to expand into the luxury space. We believe there is significant opportunity to unlock the untapped potential of this brand as we look to accelerate our global reach,” says G-III’s chairman and CEO Morris Goldfarb.
“We will leverage the existing executive management team and infrastructure based in Europe, as well as G-III’s supply chain expertise to scale and grow the Sonia Rykiel business across apparel, accessories, and numerous other lifestyle categories.”
Sonia Rykiel’s current owners Eric and Michael Dayan add: “We are thrilled to have found G-III, a true apparel and accessory powerhouse with a strong portfolio of globally recognised brands, as the new owners and stewards of the Sonia Rykiel brand. With G-III’s dominance in a diversified range of lifestyle categories, along with its well-established and broad range of retail partners, we see a bright future for the growth of the Sonia Rykiel brand. We have confidence and peace of mind that G-III will elevate the iconic Sonia Rykiel brand to its global potential.”
G-III is best known for sourcing and marketing apparel and accessories under owned, licensed and private label brands.
Its owned brands include DKNY, Donna Karan, Vilebrequin, and GH Bass.
It recently reported second-quarter results that exceeded its guidance for both the top and bottom lines. For the period ended 31 July, net sales increased 62.5% to US$483.1m from $297.2m in the prior year’s quarter. Net income amounted to $19.2m, compared to a net loss of $15m last time.