NEW YORK — Tables and walls aren’t the only new things Nicole Miller is dressing these days.

Through a new licensing deal with Donnkenny Apparel, the designer will introduce suits and coats this fall. The venture should generate $5 million in wholesale business in the first year and $10 million in the second year, said Bud Konheim, chief executive officer of Nicole Miller.

“We are going to keep minimums low,” Konheim said. “We don’t want to put pressure on licensees or to do something crazy on orders for a fast fix. You can’t talk about making great product and do $100 million in the first year.”

Suits and coats will be segmented into three price groups: Nicole Miller Collection, Nicole Miller New York, and Nicole & Co. by Nicole Miller. Suit prices have not yet been set, but coats will wholesale from $200 to $1,500. The company has no plans to inflate margins.

“Things are worth what they’re worth,” Konheim said. “Our corporate philosophy throughout is to reverse the illegitimacy of pricing. Things are competitively priced, but we want them to sell out. There’s a markup value, but not a designer-punishment value.”

Nicole Miller has also been approached by three major sportswear makers about a potential licensing deal, Konheim said, but there have yet to be meetings with the respective designers — a make-it-or-break-it occasion for Konheim who ranks design as number one.

“Until we see that,” there’s no deal, he said.

There’s the prospect to build a $200 million to $300 million business in sportswear, Konheim said, but “we’re not jumping at it because that $200 million could sink the ship.”

— R.F.

To access this article, click here to subscribe or to log in.

load comments
blog comments powered by Disqus