G-III Apparel shares rise 7.7% on new Calvin Klein agreement
G-III Apparel Group Ltd. (Nasdaq:GIII) saw its stock get a 7.7% boost this morning on the news that it will license Calvin Klein Inc. better women’s sportswear starting with the spring/summer 2009 season.
Calvin Klein, a wholly owned subsidiary of Phillips-Van Heusen Corp. (NYSE:PVH), announced the new deal just before the market closed Tuesday. Under the terms of the license agreement, G-III will manufacture and distribute Calvin Klein better women’s sportswear to department stores and specialty stores in the United States, Canada and Mexico, as well as additional Central and South American territories. G-III, a New York-based clothing manufacturer, already holds licenses under the Calvin Klein brand name for men’s and women’s better outerwear, women’s better dresses and suits, and most recently, a line of women’s performance apparel.
Calvin Klein President Tom Murry says that G-III’s approach to the other lines has proven successful. As a result, the company expects similar results with the women’s sportswear business.
By late morning, G-III is trading at $16.04 on heavier than normal volume, up $1.14 from Tuesday’s close. Shares have ranged between $10.73 and $21.00 during the past 52 weeks.
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