G-III Apparel Group Ltd. and The Camuto Group said Thursday they formed a joint venture to open and operate footwear and accessories outlet stores under the Vince Camuto nameplate.
The goal is to open units in the first half of next year.
Privately held Camuto Group, founded in 2001, will supply merchandise, and G-III will provide the infrastructure for the new concept. Brands in Camuto’s portfolio include Vince Camuto, Jessica Simpson, BCBG Max Azria, BCBGeneration, Kensiegirl, Lucky Brand and Arturo Chiang, among others.
G-III is a publicly held manufacturer of outerwear and women’s sportswear and also operates retail outlet stores under the Wilsons Leather nameplate. G-III acquired Wilsons The Leather Experts Inc. name and operations for $22.3 million in 2008. As of last January, the company operated 121 stores in 35 states, including 118 Wilsons outlet stores.
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G-III company-owned brands are: Andrew Marc, Marc New York, Marc Moto, Jessica Howard, G-III, Tannery West and Winlit. The firm holds licenses under brands such as Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess, Jones New York, Jessica Simpson, Nine West, Ellen Tracy, Tommy Hilfiger, Levi’s and Dockers.
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Morris Goldfarb, G-III’s chairman and chief executive officer, said, “This initiative will enable us to better leverage our retail infrastructure and serve as another vehicle for growth.”
Vince Camuto, the Camuto Group’s owner and ceo, said the move “will take our growing family of brands directly to the consumer through a visual and dynamic compelling concept. We also believe…these stores will prove capable of strong financial performance…[and] address a void in the outlet marketplace for fashionable but affordable women’s contemporary footwear and accessories.”
Camuto told WWD, “We’ve always thought about extending our base in retail and have been talking about that for a while. We weren’t going to do that ourselves because you need the people and an organization.” He said the company works with G-III for Jessica Simpson dresses and he has known Goldfarb for 10 years.
Camuto president Bob Galvin said the partnership hopes to open “15 to 18 stores in 2011, with six in the first quarter and the balance open by fall. We’ve identified possible locations, and have been meeting with major outlet center owners and developers.”
The new concept will not be taking over any Wilsons locations already operated by G-III, he said. Stores will average 3,000 square feet, but could be from 2,000 square feet to as much as 4,000 square feet.
“We’re looking to have 100 to 150 stores…and hope to roll 25 to 50 per year [after 2011]. We’ll start on the two coasts first and work our way in,” Galvin said.
The firms said they will share equally in the capital costs.
Shares of G-III closed at $32, up 52 cents, or 1.7 percent, after hitting a new 52-week high of $32.19 in intraday trading.