Like its portable and sporty nylon bags, LeSportsac is on the move.
The $120 million brand is giving its business a big push, seeking to double revenue by 2010.
Under the ownership of Brand Science, a division of Accessory Network Group which acquired the brand in February 2006 in alliance with Japanese conglomerate Itochu Corp., LeSportsac plans to open five stores a year for the next three years in the U.S. and abroad, for a total of 35 outposts.
The company’s New York flagship is at 1065 Madison Avenue, in addition to its SoHo store at 176 Spring Street. There also are units in Seattle, Las Vegas and Los Angeles. The brand is looking into future retail locations in New Jersey, Houston, Atlanta and San Francisco.
“Business is up 30 percent over the last year,” said Abe Chehebar, chairman and chief executive officer of ANG. “The brand is doing exceptionally well across wholesale, retail stores and the Web, which we attribute to a selection of new silhouettes and prints that our team has put together into the market. We also have a lot of opportunity for growth in opening new stores and adding new product.”
International distribution is a high priority for the 33-year-old accessories brand. In December, LeSportsac opened a store in Mexico City and another in Monterrey, Mexico. The company also is looking into opening stores or reaching distribution agreements in Asia and the Middle East. In Europe, the firm formed an alliance with Lamarthe, a distributor that will oversee LeSportsac’s wholesale business in Paris, Bologna, Madrid and Barcelona.
Such expansion is a bold step for a company that has changed hands so recently, industry experts said.
“Historically, a company like Accessories Network has taken major brands and driven them downstream to broader markets,” said a source familiar with the firm. “But LeSportsac has a good distribution upstairs, so why tamper with it?”
Chehebar doesn’t see it that way. “It’s not a question of tampering, it’s a question of recognizing opportunities and executing opportunities,” he said. “We think LeSportsac is recognizable and has a good consumer base and hasn’t scratched the surface for where it should go in distribution and product extension.”
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LeSportsac also has competition. Last year, Tim Schifter — who presided over LeSportsac before the ANG buyout — launched an accessories firm named Schifter + Partners with a minority investment from L.A.M.B.’s Gwen Stefani, whom he originally tapped for collaborations with LeSportsac.
In addition to L.A.M.B. and Jill Stuart accessories, Schifter produces printed nylon bags for the line’s Harajuku Lovers line.
Kipling, a VF Corp.-owned accessories firm known for its sporty nylon bags, is said to be going for market share with a line with pop star Fergie.
Plans are for LeSportsac to continue to partner with ready-to-wear designers. Past collaborations were with Stefani, J. Mendel, Diane von Furstenberg and dwellings guru Jonathan Adler — all of whom created six-month, limited edition collections.
Chehebar already has his next big name. LeSportsac has tapped Stella McCartney for a collaboration to bow in spring 2008. Also, after the success of its most recent artist contributor, Fafi, the firm is also pairing up with Swedish artist Anders Wenngren for fall.
The brand’s new beach collection is due out this summer, as well as a special boutique line for fall and spring. LeSportsac also launched a new advertising campaign this spring under the helm of recent hires, ceo Steve Jacaruso and chief creative director Elizabeth Kiester.
While the accessories company is growing at a fast clip, Chehebar is more pragmatic. “I don’t see it as moving at such a fast pace,” he said. “The foundation is there. People know LeSportsac and love the brand, so we’re not trying to reinvent the wheel…and we’re not forcing growth. We’re doing it organically and letting the demand spur the growth.”