Centric Brands Inc. designs, produces, merchandises, manages, and markets kidswear, accessories, and men’s and women’s apparel under owned, licensed and private label brands and distribute products across various retail and digital channels in North America and in international markets.
Segments
The company operates through Kids, Accessories, and Men’s & Women’s Apparel segments.
Kids
This segment includes the sale of products to full-price retail stores, off-price or outlet department store...
Centric Brands Inc. designs, produces, merchandises, manages, and markets kidswear, accessories, and men’s and women’s apparel under owned, licensed and private label brands and distribute products across various retail and digital channels in North America and in international markets.
Segments
The company operates through Kids, Accessories, and Men’s & Women’s Apparel segments.
Kids
This segment includes the sale of products to full-price retail stores, off-price or outlet department stores, boutiques, trade shows and e-commerce sales. Kids products are sold to approximately 700 customers and include approximately 350 licensed brands. Key licensed brands, include Calvin Klein, Under Amour, Tommy Hilfiger, Nautica and Disney.
The company’s major customers include retailers, such as Walmart.com (Walmart), Kohl’s, Target, Burlington, Macy’s.com (Macy’s), and TJX Companies. It designs, produces and sells goods to Walmart as a private label business under the George and Faded Glory names. Domestically, the company sells Kids products through its own showrooms. At the showrooms, retailers review the collections offered and place orders. The showroom representatives provide the company with purchase orders from the retailers and other customers they call upon.
Accessories
This segment includes the sale of products to full-price retail stores, off-price or outlet department stores, boutiques and e-commerce sales. Accessories products are sold to approximately 600 customers and includes 85 licensed, owned and private label brands. Key licensed brands, include Calvin Klein, Frye, Fila, Michael Kors, Kate Spade and AllSaints.
The company’s major customers include retailers, such as Walmart, Kohl’s, Macys, Dillard's and Nordstrom Companies. Domestically, it sells Accessories products through its own showrooms. At the showrooms, retailers review the collections offered and place orders. The company sells its accessories products to customers in the United States, and Canada.
Men’s & Women’s Apparel
This segment includes sales to major nationwide department stores, specialty retailers, e-commerce, boutiques and select off-price retailers of the company’s owned brands; the sale of licensed branded products bearing the brand names of BCBG, Herve Leger, Buffalo, Joe’s Jeans, bebe (collectively referred to herein as ‘Core Licensed Brands’) to major nationwide department stores, specialty retailers, e-commerce stores, boutiques and select off-price retailers; full-price and outlet retail store sales owned and operated by the company bearing the brands of Robert Graham, SWIMS (SWIMS AS), BCBG, bebe, and Joe’s Jeans; e-commerce sales through its own and its retail partners’ e-commerce sites; and royalty revenue generated through the licensing of its Robert Graham and Hudson brands to third parties for the right to use its various trademarks in connection with the manufacture and sale of designated products in specified geographical areas for specified periods.
Royalty revenues are generated through the licensing of the company’s Robert Graham and Hudson brands to third parties for the right to use its various trademarks in connection with the manufacture and sale of designated products for various product categories and geographical areas, such as men’s shoes, belts, small leather goods, dress shirts, neckwear, tailored clothing, headwear, eyewear, jewelry, hosiery, underwear, loungewear, kids, and fragrances, and for distribution of its products in Canada and Europe. The company’s products are sold to approximately 1,000 retail customers in North America and worldwide, including its own retail stores and e-commerce Websites. As of December 31, 2018, the company operated a total of 89 retail stores and 369 partner shop-in-shops.
Brands and Products
The company’s products are focused on kids’ products, accessories products, and men’s and women’s apparel. It licenses, manages and operates a portfolio of complementary consumer brands where it acts as a licensee for certain trademarks owned by third parties and produces private label products for certain customers.
AllSaints
AllSaints is a British fashion retailer headquartered in London. AllSaints sells menswear, apparel, footwear and accessories through its department store locations, stand-alone retail stores and its Website. AllSaints launched its first handbag line in 2015. The company sells AllSaints accessories related products to various retailers, including major department stores, specialty stores, AllSaints retail and e-commerce stores in the United States and Canada.
BCBG
BCBG is named for the major French expression ‘Bon chic, bon genre’, the idea that an attitude is the basis of good style. BCBG has infused west coast attitude into its European aesthetic to craft designs that inspire women. BCBG products are sold in retail stores and department stores worldwide. The company sells women’s BCBG apparel and related accessories products in its BCBG retail stores, partner shop-in-shops, major department stores, specialty stores, e-commerce stores and its e-commerce Website at www.bcbg.com.
bebe
bebe is the go-to destination for chic, contemporary fashion. The company sells women’s bebe apparel and related accessories products in its own bebe retail store, specialty stores, and through www.bebe.com.
Buffalo David Bitton (Buffalo)
Buffalo Buffalo is a major brand offering multiple denim styles and a fashion collection. Buffalo is a lifestyle brand that translates across international boundaries. Buffalo spans across 18 countries and approximately 3,000 locations. The company sells Buffalo men’s and women’s apparel to key accounts throughout the United States and Canada, including major department stores, specialty stores, and e-commerce stores in the United States and Canada.
Calvin Klein
Calvin Klein is an American luxury fashion, which specializes in apparel, lifestyle accessories, home furnishings, perfumery, jewelry, watches and ready-to-wear. Calving Klein has major market share in retail and commercial lines, as well as haute couture garments. The company sells Calvin Klein kids products and Calvin Klein men’s and women’s accessories related products to various retailers, including major department stores, specialty stores, and e-commerce stores in the United States and Canada.
Cole Haan
Cole Haan is a major footwear label and has collaborations with designers, athletes, and tastemakers, expanding its product offering to include belts, hosiery, handbags, gloves, scarves, hats, outerwear, and sunglasses. The company sells Cole Haan accessories related products in retail stores and department stores in the United States and Canada, including Cole Haan retail stores and e-commerce stores.
Fila
Fila is a sportswear manufacturing company. Fila products are internationally recognized by athletes and the fashion conscious. Fila uses major fabrics designed to radiate the sophistication of Italian craftsmanship, while allowing flexibility and performance. The company sells Fila accessories related products in the retail stores and department stores throughout the United States and Canada.
FRYE
The Frye brand is a footwear brand. The company sells Frye accessories related products to various retailers, including major department stores, specialty stores, Frye retail stores and e-commerce stores in the United States and Canada.
Herve Leger
The company sells women’s Herve Leger apparel in its own Herve Leger retail stores, partner shop-in-shops, major department stores, specialty stores, e-commerce stores and its e-commerce Website at www.herveleger.com.
Joe’s
The company sells Joe’s men’s and women’s apparel in its Joe’s retail stores, major department stores, specialty stores, e-commerce stores and its e-commerce Website at www.joesjeans.com.
Kate Spade
Kate Spade is an American luxury fashion design house. Kate Spade products are sold in retail stores and department stores worldwide. The company sells Kate Spade accessories related products to various retailers, including major department stores, specialty stores, Kate Spade retail stores and e-commerce stores in the United States and Canada.
Lucky Brand
Lucky Brand is an American denim company. Lucky Brand is also known for a range of other products, including activewear, outerwear, T-shirts, and professional attire. The company sells Lucky Brand kids’ products and accessories related products throughout the United States and Canada to major department store chains, including Bloomingdale’s, Macy’s, Lord & Taylor, Nordstrom, Belk and Dillard’s, as well as small specialty chains, such as Buckle.
Michael Kors
Michael Kors is a major designer of luxury accessories and ready-to-wear. The company’s products include accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, eyewear and a line of fragrance products. It sells Michael Kors accessories to approximately 550 stores and 1,500 in-store boutiques in various countries, including major department stores, specialty stores, Michael Kors retail stores and e-commerce stores in the United States and Canada.
Marvel
Marvel Entertainment, LLC, a wholly-owned subsidiary of The Walt Disney Company, is a major character-based entertainment company, built on a library of approximately 8,000 characters featured in various media platforms. Marvel's various major characters include Spider-Man, Avengers, Captain Marvel and Iron Man. The company sells Marvel kids related products to various retailers, including major department stores, specialty stores, and through e-commerce Websites in the United States and Canada.
Nautica
Nautica is a major American apparel brand featuring men’s, women’s, kids apparel, and accessories, as well as home, watches, and fragrances. Nautica is a major American brand with approximately 35 categories available in approximately 65 countries. Nautica operates 72 Nautica stores in the United States and 291 International stores, and approximately 1,400 Nautica branded shop-in-shops worldwide. The company sells Nautica kids' products and accessories related products to various retailers, including major department and specialty stores throughout the United States and Canada.
Nickelodeon
Nickelodeon primarily operates in the kids and family entertainment, featuring major original and licensed series for kids across animation, live-action and preschool genres. Shows aired on Nickelodeon include SpongeBob SquarePants, Rugrats, All That, and Kenan & Kel. The company sells Nickelodeon kids related products to various retailers, including major department stores, specialty stores, and e-commerce stores in the United States and Canada.
Spyder
Spyder is a major technical and fashionable brand in the winter sports market. The company sell Spyder kids' products and accessories to retail stores and department stores throughout the United States and Canada.
Timberland
Timberland offers outdoor, adventure-inspired lifestyle footwear, apparel and accessories that combine performance benefits and styling for men, women and children. The company sells Timberland kids product and accessories related products throughout the United States and Canada to department and specialty stores, and Timberland retail stores.
Tommy Hilfiger
Tommy Hilfiger is a major American clothing brand, which includes apparel, footwear, accessories, fragrances and home furnishings. It is sold in department stores and approximately 1,400 freestanding retail stores in 90 countries. The company sells Tommy Hilfiger kids related products to various retailers, including major department stores, specialty stores, and e-commerce stores in the United States and Canada.
Under Armour
Under Armour specializes in athletic apparel and protective gear. Under Armour’s apparel is engineered in various designs and styles for wear in various climates to provide a performance alternative to traditional products. Under Armour products are sold worldwide and are worn by athletes at various levels on playing fields worldwide, as well as by consumers with active lifestyles. It sells Under Armour kids related products to various retailers, including major department stores, specialty stores, and e-commerce stores in the United States and Canada.
The Walt Disney Company
The Walt Disney Company brings its stories and characters to life for families and fans of various ages through major products and experiences. The Walt Disney Company introduces new characters and stories alongside inspired retellings of classic tales. Walt Disney characters include icons, such as Mickey Mouse, Minnie Mouse, Daffy Duck and Goofy. The company sells Walt Disney kids related products to various retailers, including major department stores, specialty stores, and e-commerce stores throughout the United States and Canada.
Hudson
Hudson is a major a designer and marketer of men's and women's premium branded denim apparel. The company sells its products to various retailers, which include major department stores, specialty stores, e-commerce stores in the United States, Canada and Europe and its e-commerce Website at www.hudsonjeans.com. Its product line includes men's, women's and children's denim jeans, bottoms, tops, jackets and other related apparel.
Robert Graham
Robert Graham principal business activity is the design, development, sales and licensing of lifestyle apparel products and accessories that bear the brand name Robert Graham and Robert Graham Modern Americana. Robert Graham offers a lifestyle collection that includes knits, polos, sport shirts, T-shirts, sweaters, sport coats, outerwear, jeans, bottoms, shorts, swimwear and accessories. It sells its products through its own retail stores, to various retailers, which include major department stores, specialty stores, and e-commerce stores in the United States, Canada and Europe and its e-commerce Website at www.robertgraham.us.
SWIMS
SWIMS’ principal business activity is the design, development, sales and licensing of footwear and apparel products and accessories that bear the brand name SWIMS. SWIMS is a Scandinavian lifestyle brand that offers a range of water-friendly footwear for men. SWIMS product line includes men's and women's footwear, swimwear, outerwear, ready-to-wear, and accessories. It sells its products through its own retail stores, to various retailers, which include major department stores, specialty stores, and e-commerce stores in the United States, Canada and Europe and its e-commerce Website at www.swims.com.
Acquisition
In October 2018, the company acquired from Global Brands Group Holding Limited (GBG) and GBG USA Inc., a wholly-owned subsidiary of GBG, a major part of GBG’s North American business, including the wholesale, retail and e-commerce operations, including all of their North American kids business, all of their North American accessories business and a majority of their West Coast and Canadian fashion businesses (the ‘GBG Business’) (the ‘GBG Acquisition’). The GBG Business licenses brands, such as Calvin Klein, Under Armour, Tommy Hilfiger, BCBG, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Kate Spade, All Saints and Cole Haan, and entertainment properties, including Disney, Marvel and Nickelodeon, among others.
Suppliers
The company utilizes Li & Fung Group as a sourcing agent to source a portion of its products pursuant to the transition services agreement.
Sales and Distribution
Wholesale: The company’s wholesale operations include the sale of products licensed by it from third parties, as well as the sale of products under its Owned Brands and private label brands. Its products are sold through a cross section of major retailers, such as Walmart, Macy's, Target, Burlington, Kohl's, TJX Companies, Costco, Nordstrom, Dillard's, Ross, Target, JC Penney, and Amazon. It also sells its products over the Web through retail partners, such as Walmart, Macy's, and Nordstrom.com.
The company sells its products through its own showrooms. At its showrooms, retailers review the latest collections offered and place orders. The company also sells various products internationally through distributors in various countries that are managed by it or through licensed stores.
Direct to Consumer: The company sells its owned brands to consumers through 19 Robert Graham brand full-price retail stores and 12 outlet stores. It sells SWIMS products through one full-price retail store and two outlet stores. The company also sells its owned brand products through its online e-commerce sites at www.hudsonjeans.com, www.robertgraham.us and www.swims.com.
In connection with the GBG Acquisition, it also assumed 41 leases operated under its BCBG name, 12 leases operated under the Joe’s Jeans name, one lease operated under the Herve Leger name, and one lease operated under the bebe name. Also in connection with the GBG Acquisition, the company owns and operates various online e-commerce sites, such as www.bcbg.com, www.herveleger.com, www.buffalojeans.com, www.joesjeans.com, and www.bebe.com.
In addition, the company utilizes partner shop-in-shops for certain of its brands to improve brand recognition, to permit merchandising of its lines by department stores, and to differentiate the presentation of its products.
Customers
The company’s products are sold to consumers through its own retail stores, partner shop-in-shops and e-commerce Websites, as well as major department stores, specialty stores, mass market retailers, other e-commerce Websites primarily in the United States and Canada and select locations worldwide.
Seasonality
The company has historically experienced, and expects to continue to experience, seasonal fluctuations in its net sales. A major amount of its net sales are realized during the third and fourth fiscal quarters (year ended December 2018) when it ships orders taken during earlier months for the back-to-school and holiday seasons.
Regulations
The company’s import operations are subject to international trade agreements and regulations, such as the North American Free Trade Agreement and other bilateral textile agreements between the United States and various foreign countries, including China, Hong Kong, India, Indonesia, Italy, Jordan, Korea, Morocco, Peru, the Philippines, Portugal, Taiwan, Turkey and Vietnam.
History
The company was founded in 1987. It was formerly known as Differential Brands Group Inc. and changed its name to Centric Brands Inc. in October 2018. The company was incorporated in 1987.
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