(Adds details of agreement with Macy's)
Iconix Brand Group Inc. (ICON) and an entity controlled by
entertainer Madonna and her manager Guy Oseary are forming a joint
venture to develop and acquire brands.
The company, a brand manager whose holdings include Candie's and
Roca Wear, said the MG Icon venture entered into an exclusive
license and services agreement that allows the use of Madonna's
name and personality in connection with apparel, footwear and other
products. The entertainer agreed to provide creative services
related to development and promotion of the venture's brands.
Separately, MG Icon reached a direct-to-retail agreement with
Macy's Inc. (M) for the "Material Girl" junior collection set for
introduction during the back-to-school season at about 200 Macy's
stores and online. The "Material Girl" collection of apparel,
footwear, handbags and jewelry is expected to retail at $12 to $40.
Growth plans include fragrance, starting next year, as well as
expansion into additional Macy's stores.
As part of the agreement, Macy's will be able to launch
additional brands with the joint venture.
Iconix launched five direct-to-retail partnerships in the U.S.
last year, while renewing four. It also formed a third
international joint venture and acquired stakes in Ecko and Ed
Hardy.
Madonna stated in a press release, "Joining forces with Iconix
to bring my fashion ideas to consumers is very exciting for me."
She said she looks forward to working closely with Iconix "to
create and translate my vision and ideas for MG Icon."
Iconix shares closed Wednesday at $15.26 and were inactive
premarket. The stock has more than doubled in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com