Jones Apparel Group Inc. (JNY) reached an exclusive licensing
and distribution agreement with G-III Apparel Group Ltd. (GIII),
whose Andrew Marc brand will take Jones' jeanswear division into
the menswear market.
Jones has been building its portfolio, recently agreeing to buy
55% of Stuart Weitzman Holdings LLC, a high-end women's footwear
and accessories maker, for about $180 million, with plans to
acquire the rest of the company by the end of 2012.
Jones' jeanswear division currently distributes 12 women's
brands such as Gloria Vanderbilt, L.e.i., Nine West and Jessica
Simpson.
The initial launch of the Marc Moto line is set for the fourth
quarter, with introductions of Andrew Marc and Marc New York lines
expected in 2011. The apparel line will include jeans, casual pants
priced from $49 to $79, as well as casual shirts and sweaters
priced at $24 to $49.
Financial details of the licensing agreement weren't
provided.
G-III Chairman and Chief Executive Morris Goldfarb said the
Andrew Marc brand currently holds a "strong position" in upscale
specialty and department stores.
Jones, a large distributor to major retailers like Nordstrom
Inc. (JWN) and Macy's Inc. (M), recently posted sharply higher
first-quarter profit and raised its full-year revenue guidance, in
further signs of hope for the retail sector.
Shares of Jones and G-III closed Wednesday at $19.48 and $27.55,
respectively, and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;