The Wall Street Journal-20080117-Kohl-s to License Liz Claiborne Brand
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Kohl's to License Liz Claiborne Brand
Apparel maker Liz Claiborne Inc. plans to license its Dana Buchman apparel line to midtier retailer Kohl's Corp.
The deal is part of a broader strategy by Claiborne -- which has been trying to reinvent itself in the wake of department-store consolidation -- to eliminate a significant number of its brands and focus on fast-growing ones including Juicy Couture, Mexx, Kate Spade and Lucky Brand Jeans. The value of the licensing agreement couldn't be determined.
The strategic review that Claiborne began in July is scheduled to be completed in the first quarter. The company still must decide what to do with four of the 16 brands it placed under review -- Ellen Tracy, Kensie, prAna and Mac & Jac. George Sharp, the creative director of the Ellen Tracy brand, resigned yesterday, which will likely make it more difficult for the company to sell that brand, according to a person familiar with the situation.
With its $300 blouses and $375 pants, the Dana Buchman brand targeted a more upscale consumer than the flagship Liz Claiborne label. The Dana Buchman label, which was launched 20 years ago, marked the first time the company ventured beyond its core Liz Claiborne line.
A spokeswoman for Kohl's declined to comment.
The brand, still designed by Ms. Buchman, a protégé of the late Ms. Claiborne, grew to around $200 million in annual sales at its peak but has fallen out of favor amid department-store consolidation and changing consumer tastes. Last year, the brand had sales of around $60 million, a person familiar with the situation said. It was unclear whether Ms. Buchman would design the new lower- priced collection for Kohl's.
Claiborne's stock was up 83 cents, or 5.1%, at $17.23 yesterday in 4 p.m. New York Stock Exchange composite trading.
