DSW and Authentic Brands Group have successfully finalized the acquisition of Camuto Group, in a deal valued at around $341 million. This acquisition represents a significant development in the fashion industry, as DSW and ABG now own the esteemed Vince Camuto brand, along with the highly sought-after footwear licenses for Jessica Simpson and Lucky Brand. This strategic collaboration will allow DSW to expand its offerings by licensing Camuto Group’s footwear, handbags, and jewelry lines, and even branch out into new product categories.
With the completion of this acquisition, DSW will assume control over Camuto Group’s global production, sourcing, and design operations, which include facilities in Brazil and China, as well as a distribution center in New Jersey. Moreover, DSW and ABG are now in possession of the brand’s inventory and accounts receivable, indicating their commitment to building a solid foundation for the consolidated entities.
The intellectual property rights for numerous Camuto Group brands, including Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, and Enzo Angiolini, have also been acquired by DSW and ABG. Under the ownership structure, DSW will hold a 40 percent stake, with ABG retaining the remaining 60 percent. This setup is designed to capitalize on the strengths of both entities to foster growth and innovation across the brands.
Operated by ABG, the partnership for property rights will focus on licensing the various brands’ footwear, handbags, and jewelry categories to DSW, while also exploring opportunities for new product offerings. By collaborating with external licensees, DSW aims to generate licensing revenues and harness ABG’s brand portfolio for potential collaborations and wholesale expansions.
In a statement, Roger Rawlins, CEO of DSW Inc., underscored the long-term strategy behind the acquisition, highlighting the importance of owning a design and sourcing infrastructure to enhance control over product assortment and drive market share growth. With this strategic move, DSW is positioning itself to seize more footwear sales across different platforms, including their retail network and potential wholesale ventures.
Looking to the future, DSW aims to consolidate its brand portfolio onto the Camuto platform by fiscal 2020, with a target of reaching $1 billion in annual retail sales for its brand business. This ambitious goal underscores the combined strength and capabilities of DSW and ABG in driving growth and profitability, while also improving the overall brand experience for consumers globally.
For more information on the acquisition and its implications, visit DSW website and Authentic Brands Group website.
