GIII
#The size of the deal is, yes, it's pretty consistent.
That's our comfort zone, and that's not to say that we couldn't reach out further.
But our comfort zone is between $0.5 billion to $1 billion level, also depending on the balance sheet that we would be acquiring.
So the growth, or I guess your question is what is our strategy for some of the Jones space.
We are in the middle of several situations, none of which have crossed the finish line.
What we have a habit of doing is we look at several things simultaneously.
As we all know, many pieces, or businesses, or opportunities fall away.
So our strategy is not to take on more than we can handle, but to look at quite a bit, to be selective and make the best deal for ourselves and our shareholders.
And we are near a couple of opportunities that are there for us, and whether they are licensed or acquisitions, our desire would be an acquisition.
But that's not to say if an appropriate license was there, or a combination, if a partnership was there, we would concede our absolute wish which was to acquire brands and just take part of a brand or a license that's favorable to us.
Thank you, <UNK>.
Thank you.
As I look at the two big pieces of the business, <UNK>, I would tell you that it's probably pretty comparable, both in terms of wholesale and retail.
We're probably looking for a pretty similar increases in both sides of the business.
In terms of operating margin improvement, we are forecasting some operating margin improvement, and I think that's going to also come from both the gross margin, slight improvements in both gross margin and the SG&A.
When we think about the Bass business, we've got lots of room in terms of gross margin improvement, as well as SG&A leverage.
A little less room in terms of improving the gross margin performance of our wholesale business.
It did perform extremely strongly this past year.
We're up in the high-single-digits in terms of operating margin improvement.
So as sort of a recap of the whole thing, I think we will have balanced growth across the business and we'll see some nice improvements in terms of both gross margin, as well as SG&A.
<UNK>, I think I'd like to add that we are all focused on what might be considered our new toy, and that would be Bass.
What we're not focusing on is everything that's still left on the table for us at Calvin Klein.
This brand, although it is our largest business, and one might look at it and say where are you going to go with this.
The opportunity with Calvin Klein is endless.
There's not a classification that we are not projecting good growth in for the coming year.
Surprisingly, and I think I touched on it earlier, it doesn't necessarily have to be that there is another brand to replace Jones New York.
There can be an existing brand that just has gotten so good and so broad at what they do, that they are able to garner a disproportionate amount of space and the amount of the budget that's out there for growth.
The focus, again, as we described earlier on areas that seem to be matured, is better design ---+ design at Calvin Klein in each classification is best-in-class, dress designs are as good as they get.
When you think you've reached the limit, you shop the next collection and you say, oh, my God, how did it get better.
When you look at our bag business, all we need is more space.
We have great product.
Our battles today are trying to create more space to display all the great stuff that we do.
Our suit business, we are doing amazingly well with it.
We have, again, a solid design team.
We have a fan base at retail that is supporting it and we clearly dominate that area.
We brought that area back to life.
Coats, there's not very much that I can say about coats that I haven't said.
It's design, it's price, it's quality, it's cooperation from your vendor base.
We have it all for Calvin Klein.
If you were going to look at this Company, a big percentage of our growth is still available through further development of Calvin Klein.
Globally, in its lifecycle, I think they've got a long way to go.
This brand will survive and will prosper.
There's nothing that one could guarantee about a hiccup.
A hiccup might occur based on an environment, based on a change in management or design, but, and maybe it's just a little bit of time that cures it all.
This is an amazing brand that's owned and operated by an amazing company.
So our belief ---+ we are making a big bet that this brand is here forever.
Hopefully, the team that's currently running it is there forever.
They are highly competent.
I guess I might be hearing your concern about the Warnaco piece that was acquired.
That was acquired, it's just taking a little longer than expected to integrate the company.
We've had those issues.
We continue to have it.
We over planned for Bass this fourth quarter, but we're fixing it.
And the same goes for PVH.
Thank you very much for hearing our story and I wish you a good day.
