New York—PVH said Thursday it plans to sell its G.H. Bass & Co. footwear brand to G-III Apparel Group for $50 million.
“G.H. Bass & Co. has been a positive and important contributor to PVH’s success since we acquired the business in 1987,” said Emanuel Chirico, PVH’s chairman/ceo. “However, our core competencies today lie in our lifestyle apparel businesses and we see the future of PVH focused around the global growth of our designer lifestyle brands, led by Calvin Klein and Tommy Hilfiger. We believe this transaction reinforces our strategy of driving growth through our higher margin businesses, while minimizing earnings volatility and enhancing stockholder value.”
PVH reported that as a result of the sales, it slightly raised its third quarter earnings per share forecast to $2.25 from $2.20. PVH also expects to incur a pre-tax loss of about $20 million in connection with the sales of assets. Meanwhile, G-III reported that the purchase would pare down its fiscal year earnings by about 10 cents “and be accretive thereafter on an annual basis.”
According to Morris Goldfarb, chairman/president/ceo of G-III, “We are delighted by the prospect of adding such a strong heritage brand to our portfolio. We are confident that the addition of approximately 160 G.H. Bass & Co. outlet stores will integrate well into our retail platform and provides us with a powerful opportunity to continue to grow and diversify our business.”
The deal is expected to close during fourth quarter.