Footwear and accessories retailer DSW Inc. announced today it has acquired 100% of Camuto Group’s operations for $200 million. This includes Camuto Group’s operations that employ 1,000 global associates and its global production, design and sourcing framework, such as its operations in Brazil and China and a new distribution center in New Jersey, according to Simon Nankervis, chief commercial officer at DSW.
Camuto Group is best known for its Vince Camuto footwear brand, as well as footwear brands Jessica Simpson and Lucky Brand.
DSW also partnered with brand development company Authentic Brands Group to purchase the Camuto Group brands—including Vince Camuto, Louise et Cie, Sole Society, CC Corso Como and Enzo Angiolini—wherein DSW will own 40% for an additional $56 million and ABG will own 60%. All together, Camuto Group will receive $375 million.
“Camuto Group happened to be for sale at exactly the right time,” Nankervis says. “Due to some strategic missteps after founder Vince Camuto passed, Camuto Group’s ownership preferred to sell than maintain private operations. This is fortuitous timing since DSW Inc. had identified a need for a design and sourcing organization to ensure long-term growth. DSW’s retail, e-commerce and wholesale expertise combined with ABG’s proven know-how in brand building and marketing provide a strong foundation for growth.”
Camuto Group will maintain its e-commerce websites and will continue sell its own products, Nankervis says. DSW has acquired the operations of those websites under the agreement, while the DSW and ABG partnership have jointly purchased the intellectual property of those sites, he says. Camuto Group also will continue to manage its dedicated wholesale and third-party design relationships independently of DSW’s retail business, and Alex Del Cielo will remain CEO of Camuto Group.
The acquisition allows DSW to “capture more footwear transactions in more channels via Camuto Group’s substantial wholesaling business,” Nankervis says. “And it allows us to harness Camuto Group’s exceptional talent base to support the growth of DSW Inc.’s exclusive brands over time, both in stores and online.”
This follows another acquisition DSW made this past May when it completed its acquisition of Canada’s Town Shoes Ltd., which operates about 140 stores under the Shoe Company, Shoe Warehouse and DSW banners in Canada. But in August, DSW decided to shutter the 38 Town Shoes locations, according to its second-quarter earnings call on SeekingAlpha.
In its second quarter ended Aug. 4, DSW didn’t break out e-commerce sales, but told Internet Retailer that its comparable sales for stores and online grew 10% compared with last year.
DSW is No. 153 in the Internet Retailer 2018 Top 500.Favorite