NEW YORK — Calvin Klein Inc. is dressing up its better collection.
CKI is expected to announce today that it is adding a women’s dresses license to the better-priced Calvin Klein line in a strategic deal with G-III Apparel Group Ltd. for the U.S., Canada and Mexico.
As part of the agreement, G-III will manufacture and distribute Calvin Klein-branded women’s better dresses to department and specialty stores. The dresses are expected to complement the label’s other classifications, which include better sportswear, outerwear, suits, shoes and accessories.
The line’s suggested retail pricing will be in line with other designer-based collections in better departments nationwide, company officials indicated. The dress line, which will ship 12 months a year, is scheduled to launch softly for the next holiday season and completely for spring 2007. The distribution strategy is selective, targeting about 300 doors for the first season, then increasing the number of doors to over 800 by the end of the first year. G-III also has licenses for women’s and men’s outerwear and women’s suits under the Calvin Klein moniker.
Tom Murry, CKI’s president and chief operating officer, could not be reached for comment but said in a statement: “We believe the better dress zone is the perfect next step for the Calvin Klein women’s brand … G-III has done an excellent job for us in men’s and women’s better outerwear and women’s better suits and we anticipate the same success with dresses.”
G-III recently inked a license for the Sean John women’s sportswear collection. It also has licensed deals with fashion brands such as Kenneth Cole, Nine West, Cole Haan, Guess, Jones Apparel, Cece Cord, Ellen Tracy, Tommy Hilfiger and Donald Trump, and owns labels including Marvin Richards, Black Rivet, La Nouvelle Renaissance, Colebrook, Winlit, LNR and Siena Studio.
In the latest fiscal year, which ended Jan. 31, G-III had net earnings of $7.1 million, or 58 cents a diluted share, which compared with a profit of $703,000, or 6 cents, the previous year. Net sales spiked 51.2 percent to $324.1 million.
“Our existing Calvin Klein lines are being very well received at retail, and we are confident that we will meet with the same success with this new product category,” said Sammy Aaron, G-III’s vice chairman.