Phillips-Van Heusen Corporation announced that it has entered into a licensing arrangement with The Timberland Company to design, source and market men's and women's casual sportswear under the Timberland brand in North America. Phillips-Van Heusen will assume management of the men's apparel line in Fall 2008 and launch a women's line in Fall 2009.
Distribution of the Timberland brand product will be principally through department and specialty stores, as well as Timberland's own full price and outlet retail stores. It is estimated that the men's line will be available in approximately 600 department store doors in Fall 2008, in addition to specialty store distribution. Sales of Timberland brand apparel in North America were approximately $70 million in 2006.
Phillips-Van Heusen expects to incur a total of approximately $5 million of start-up costs in 2007, associated with design, merchandising and selling expense. The Company continues to estimate that, including these start-up expenses, 2007 earnings per share will be in the $2.97 - $3.05 range, which also excludes the impact of the acquisition of Superba, completed in January 2007, which is expected to be modestly accretive.
Emanuel Chirico, Chief Executive Officer of Phillips-Van Heusen Corporation said, "Our partnership with Timberland pairs the apparel design, logistics and marketing expertise of PVH with the strength and heritage of the Timberland brand. Timberland is an authentic outdoor traditional brand which has a unique positioning. It will complement PVH's strong stable of brands and enable us to reach a broader spectrum of consumers."
Jeffrey Swartz, Timberland President and CEO said, "We are pleased to enter into this agreement with a powerful partner like Phillips-Van Heusen. They have the capabilities to help us maximize our brand potential through an improved apparel offering and strengthened distribution under the Timberland label. With their impressive portfolio of high-quality premium brands and our shared commitment to responsible manufacturing, I believe we are poised for success."
Phillips-Van Heusen Corporation, USA
marketing@alchempro.com
