G-III Secures North American License for London-Based French Connection

G-III Apparel Group expands its licensing portfolio. The U.S. group, owner of brands such as Dkny, Donna Karan and Karl Lagerfeld, has signed an agreement with the British fashion company French Connection Group, which will be responsible for manufacturing and distributing its garments in the North American market, as well as some accessories, according to WWD.

The U.S. group has acquired this license after closing a last quarter marked by the progressive exit of the licensed businesses of Calvin Klein and Tommy Hilfiger, which return to PVH Corp, in what has meant, since 2022, years of tension between the two groups for the distribution of the brands.

French Connection chairman Apinde Singh Ghura led a 2021 deal to acquire the brand for £25 million (then €29.3 million) through MIP Holdings. Since then, Ghura and MIP have worked to revitalize the business. For Ghura, this partnership “unlocks significant opportunities” for the company in the U.S. territory.

G-III has faced the departure of two of its main franchisees: Calvin Klein and Tommy Hilfiger.

For his part, G-III president and CEO Morris Goldfarb said that expanding the licensing portfolio is “the centerpiece” of its growth strategy. “This partnership leverages our infrastructure at scale and our strengths in design, sourcing and distribution,“ he said.

In addition to its proprietary brands, G-III is a shareholder in Awwg (Pepe Jeans) and has licensing agreements with companies such as Levi’s, Nautica, Champion, Halston, Converse and Bcbg. According to the latest published data, its net profit fell by 29.8% in the third quarter of the year, to 80.6 million dollars. However, it managed to clean up its balance sheet with a 95% reduction in debt compared to the previous year.

This is not the first time that French Connection has outsourced any of its licenses: in 2022, it was the footwear license, which it granted to Sant+Wade through a three-year agreement. The company’s origins date back to 1972, when it was founded by Stephen Marks in London, and it currently has a global presence in more than 200 locations.