Thursday, August 11, 2016

LVMH Confirms DKNY Sale

Following reports last week, LVMH has confirmed that it has sold Donna Karan International (DKI) - owner of DKNY - to G-III Apparel Group for $650 million.

"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," said Toni Belloni, group managing director of LVMH, reports WWD.

In spite of the sale, creative directors Maxwell Osborne and Dao-Yi Chow - who continue to run their own brand, Public School - will remain at the label along with CEO Caroline Brown to whom Belloni also expressed his gratitude "for the strategic actions that created a platform to support DKNY's continued growth".


G-III Apparel Group - which currently owns brands including Vilebrequin, Andrew Marc, and Marc New York, and has licensing deals with Tommy Hilfiger, Calvin Klein, and Karl Lagerfeld among others - said that it felt it was well positioned to move the company (founded in 1989 by Donna Karan herself, who departed her namesake labels last year) into its next stage of growth.

"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."

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