G-III Apparel Group Ltd. has successfully acquired the luxury fashion brand Karl Lagerfeld, solidifying its commitment to the luxury fashion sector. Previously holding a 19% minority stake, G-III expressed its intention to obtain full ownership of the brand and has now acquired the remaining 81% interest in Karl Lagerfeld for approximately €200 million ($214 million). The acquisition was funded through cash on hand.
This acquisition means that subsidiaries of G-III Apparel Group now own the Karl Lagerfeld brand. CEO Morris Goldfarb has expressed confidence in the leadership team of Karl Lagerfeld, led by Pier Paolo Righi, with whom they have had a close collaboration for the past seven years. Goldfarb believes that by working together, they can unlock the brand’s global potential and achieve retail sales of over $2 billion.
Karl Lagerfeld, founded in 1984 by the renowned designer of the same name, who was the creative director of Chanel for over 30 years and Fendi for 50 years, has experienced a successful resurgence in the past decade. Since CEO Pier Paolo Righi took over in 2011, the brand has expanded and currently operates almost 120 company-owned and franchised stores. It is also available in select multi-brand retailers and through its online website.
Despite the challenges posed by the COVID-19 pandemic, Karl Lagerfeld’s sales in 2021 saw a remarkable 40% increase compared to the previous year and were up 35% compared to pre-pandemic levels. The company aims to achieve annual growth of approximately 20-25%.
This acquisition marks a significant milestone for G-III Apparel Group as it solidifies its commitment to expand its presence in the luxury fashion sector. With the combined expertise of G-III and Karl Lagerfeld’s leadership team, the future looks promising for the brand, with continued growth and success expected.
Useful links:
1. G-III Apparel Group
2. Karl Lagerfeld
