The sale is part of a deal with WHP Global and Express worth about $75 million.
Walmart announced the sale of its menswear brand Bonobos. The sale is part of a deal with WHP Global and Express worth about $75 million. Walmart acquired the direct-to-customer Bonobos brand in 2017, paying $310 million. At the time, the retailer was banking on expanding online and competing with Amazon in the fashion segment.
Later, the retail giant began parting with brands acquired under e-commerce president Mark Lohr. In particular, Bare Necessities, Shoes.com and ModCloth disappeared from Walmart's portfolio. And in February 2023, the company sold the Moosejaw brand to Dick's Sporting Goods.
In the new deal, WHP buys the Bonobos brand for $50 million and also gets a $25 commitment. After the deal closes in the second quarter of 2023, the company will manage the brand in exchange for royalties.
"Bonobos is showing double-digit sales growth, and we plan to continue that growth while realizing operational synergies and other economies of scale," Express CEO Tim Baxter commented. He said the purchase is "an attractive addition to the portfolio" to increase operating income and positive free cash flow in fiscal 2023.
After the deal closes, WHP's portfolio will have more than 10 brands with combined sales of about $7 billion annually. According to Walmart, Bonobos sales have grown from "seventy to hundreds of millions of products" over the years.