Quick Take: DKNY, Donna Karan to Expand in China Through Joint Venture

U.S. apparel-maker and distributor G-III Apparel Group Ltd. is expanding its DKNY and Donna Karan brands in China through a new joint venture.

The partnership is being formed with former Tommy Hilfiger Corp. Chairman Fred Gehring’s investment fund, Amlon Capital BV, with $25 million of equity that will be used to accelerate the growth of DKNY and Donna Karan businesses in China, including Macau, Hong Kong and Taiwan.

DKNY has 44 stores in the region now, half of the 89 it has in South Korea.

G-III Chairman and CEO Morris Goldfarb said that Greater China is “a major strategic opportunity” for the company.

This marks one of the company’s biggest moves since it acquired Donna Karan International Inc. — owner of the DKNY, Donna Karan and DKNY Jeans brands — in December from LVMH Moët Hennessy Louis Vuitton SE.

G-III also holds a stake of the worldwide rights of the Karl Lagerfeld brand, which has wide recognition in China. Chinese menswear producer Septwolves agreed Tuesday to buy distribution rights for the brand for 300 million yuan ($45 million).

As China’s middle class expands, many fashion brands, including Victoria’s Secret and Topshop, have outlined plans to expand their presences in the country, catering to a rising demands for higher quality products.

Shares of NASDAQ-listed G-III surged 7.49% to $26.98 on Thursday.

Contact reporter Coco Feng (renkefeng@caixin.com)