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Home / Knowledge / News / Fashion / Elizabeth Arden & Liz Claiborne enter distribution deal

Elizabeth Arden & Liz Claiborne enter distribution deal

29
May '08
Elizabeth Arden Inc and Liz Claiborne Inc announced that they have entered into an exclusive long-term global licensing agreement for the manufacture, distribution and marketing of the Liz Claiborne fragrance brands.

The Liz Claiborne fragrance portfolio consists of many well-known and highly-ranked products, including the Juicy Couture, Usher, Curve by Liz Claiborne, Lucky Brand and the Liz, Realities, Bora Bora and Mambo fragrances.

"This is a very strategic transaction for both companies," said E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc. "We have worked closely together through our existing distribution relationship and are very familiar with the Liz Claiborne fragrance portfolio.

Specifically, this transaction will allow us to (i) benefit from improved market share and productivity in our North American fragrance business, (ii) gain efficiencies from a larger fragrance business, particularly within our supply chain, logistics and sales organizations, (iii) increase gross margins by converting existing mass customer sales from a distribution margin to an owned/licensed margin and (iv) provide additional sales volume to our fast-growing international business. We look forward to working collaboratively with the Liz Claiborne brand teams to continue Liz Claiborne's success with respect to the marketing and brand development of these distinctive fragrance brands."

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said, "Fragrance is an important equity enhancing category for our brands. For us to maximize profitability in this business going forward, however, we would have to make significant changes to how it is operated. Doing that right now would distract us from other initiatives currently underway that are core to our strategy.


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