- Danielle Wightman-Stone |
Authentic Brands Group LLC (ABG), owner of a brands including Juicy Couture, Jones New York, Herve Leger, and Judith Leiber, has finalised its purchase of Nautica from VF Corporation, to mark the company’s largest brand acquisition to date.
The addition of Nautica propels ABG’s portfolio to nearly 7 billion dollars in annual retail sales globally, and makes the iconic American lifestyle brand the largest brand within ABG’s portfolio, as it generates more than 1.2 billion dollars in annual retail sales, has 360-plus freestanding stores, and more than 40 strategic partners.
“Nautica comes at an important time in ABG’s development as we are placing a significant emphasis on international business,” said Jamie Salter, chairman and chief executive of ABG, in a statement. “This acquisition brings us that much closer to our goal of achieving a retail sales split of 50 percent international and 50 percent domestic and reaching 10 billion dollars in annual retail sales by 2020.”
VF Corporation sells Nautica to Authentic Brands Group
As part of this acquisition, ABG takes on Nautica’s brand marketing and licensing functions. While other aspects of the operation including the brand’s wholesale business, 70-plus US retail stores, e-commerce, and product development, have transitioned into the operating company for Aéropostale, now the operating partner for both Aéropostale and Nautica, and is part of the company’s mission to create a multi-brand platform that services both direct-to-consumer and wholesale accounts.
The Aéropostale and Nautica brands are estimated to generate a total of 2.4 billion dollars in annual retail sales globally.
“Nautica’s new structure is another example of how ABG is disrupting traditional business models,” added Nick Woodhouse, president and chief marketing officer of ABG, in a statement. “Our close connection to the operating company for Aéropostale and Nautica allows us to build upon the brand’s strong foundation and launch Nautica into its next phase of global growth.”
ABG’s initial focus for Nautica will be on developing near-term and long-term strategies that reinforce the brand’s positioning in the men’s, women’s, and kid’s markets, while also exploring strategic partnerships to grow Nautica’s product offerings and channels of distribution, and to increase the brand’s presence in current regions, and expand into new territories.
Image: courtesy of ABG/Nautica