Nine West is on the move.
The brand has found shelf space in Kohl’s, after being snapped up by Authentic Brands Group (ABG) in June following its parent company’s bankruptcy filing.
The department store chain announced the news today along with its earnings results for the second quarter, which topped forecasts across the board.
“We’re excited to bring Nine West, a brand synonymous with fashion and sophistication, to Kohl’s customers nationwide,” said Doug Howe, Kohl’s chief merchandising officer. “We admire the role Nine West has played in shaping the footwear industry and its success in becoming one of the most recognized and desired brands among female consumers, particularly millennial customers. The addition of the Nine West brand to our women’s portfolio further illustrates our commitment to delivering relevant, sought-after brands that will continue to drive new customers to Kohl’s.”
Beginning in July 2019, Kohl’s will offer — both online and in stores — Nine West footwear, handbags and outerwear as well as a new women’s apparel collection.
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The deal marks the first major business announcement for Nine West since its bankruptcy and subsequent acquisition by ABG. The group reportedly beat out DSW Inc. to cast the winning offer of $340 million this summer to procure Nine West and Bandolino.
For its part, Kohl’s, which had been no stranger to the pains of the supposed retail apocalypse over the past two years, today offered up proof that its turnaround strategy is yielding rewards.
The retailer posted Q2 sales of $4.6 billion, a gain of 4 percent over the prior year and stronger than the $4.3 billion analysts had expected. Profits, meanwhile, surged 40 percent to $292 million, or $1.76 per diluted share, beating out market watchers’ forecast for $1.64 per share.
Comparable sales were also on the rise — up 3.1 percent.
“Our strong second-quarter performance demonstrates that the strategies we put in place are accelerating our performance, while the teams continue to manage the business with great discipline,” said CEO Michelle Gass on a call with investors today. “I am pleased with the progress and success in all areas of our business, including sales, gross margin and inventory.”
Kohl’s, over the past year, has unveiled several strategies aimed at reviving its business. Among them are creating smaller-format stores and adding popular brands such as Under Armour to its product mix.
The company said today that men’s, women’s and footwear were its strongest categories during the quarter.