Polo Ralph Lauren Corp. has now taken its entire Asian business in-house.
Polo said Friday it will assume direct control of its wholesale and retail distribution in South Korea from the licensee in that market, Doosan Corp., beginning Jan. 1.
The apparel firm said Doosan will receive consideration of $47 million, consisting of a $25 million cash payment for certain assets and an additional estimated payment of $22 million for inventory and other assets, at closing on Dec. 31.
Doosan, which had the license for 12 years, will continue to distribute Polo Ralph Lauren products in the region until the end of the year. There are currently 175 shop-in-shops and five freestanding stores throughout South Korea.
A spokesman for the company said after the acquisition of the Doosan license closes, there won’t be any other Asian licenses left in operation.
“Expanding and elevating our international presence is one of our highest strategic priorities,” said Ralph Lauren, chairman and chief executive officer.
Roger Farah, president and chief operating officer, said, “Assuming control of South Korea is another important milestone in our broader Asian growth strategy. It is a major piece of the strategy that enables us to directly operate all of Asia with greater consistency across all markets and channels in a manner that is more closely aligned with our global brand positioning and objectives.”
The company began buying back its Asian licenses in 2007, with the first being the Japanese license. Polo has since bought back the operations in other Asian territories. The most recent acquisition was the license with Dickson Concepts International Ltd., which it bought for $20 million, plus $17 million in other consideration. The Dickson license, which ended Dec. 31, 2009, was for the distribution of Polo-branded apparel in China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan and Thailand.
Acquired licensed businesses become wholly owned operations of Polo Ralph Lauren.
With the Doosan announcement, Farah said, “[W]e are looking forward to a fully integrated Asian strategy that includes South Korea and leverages the Hong Kong-based leadership, expertise and infrastructure we have established over the last year in order to optimize the unique opportunities of each country.”
The company is scheduled to report first-quarter results on Aug. 4.
Shares of Polo Friday closed at $79.22, up $2.75 or 3.6 percent.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye