Shares of Express are higher on Friday after the fashion and apparel company purchased the menswear brand Bonobos from Walmart for $75 million in partnership with global brand management firm WHP Global.
WHP Global will acquire the Bonobos brand for $50 million, while Express will acquire the operating assets and assume related liabilities of the Bonobos business for $25 million, the companies said on Thursday.
Walmart bought Bonobos for a much larger price tag of $310 million back in June 2017.
The deal marks the first acquisition since WHP Global partnered with Express in early 2023 for a 7.4% stake in the clothing retailer.
WALMART CLOSING 4 CHICAGO STORES, BLAMING MILLIONS IN ANNUAL LOSSES
Despite Walmart taking on Bonobos to lure young shoppers, the world's largesr retailer struggled to make the brand profitable and laid off dozens of employees in 2019.
Under the current economy, Walmart is now concentrating on building out alternative revenue streams, such as advertising and delivery, rather than adding brands to its assortment.
In March, Express reported a 14% fall in fourth-quarter sales at $514.3 million as the women's business struggled, while the men’s apparel division posted a record year, gaining market share in denim, knitwear and chinos categories.
WALMART SUES CAPITAL ONE IN CREDIT CARD BRAWL
The deal is expected to close in the second quarter, after which WHP and Express will enter into an exclusive license agreement, giving Express the right to use the intellectual property acquired by WHP to run the Bonobos business.
CLICK HERE TO GET THE FOX BUSINESS APP
Reuters contributed to this report.
