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Everlast Worldwide Inc.
Announces The Signing Of Largest Licensing Agreement In
Company's 94 Year History
Company Licenses US Women's Apparel Category To Jacques
Moret, Inc.
Everlast Worldwide Inc. (Nasdaq: EVST), manufacturer,
marketer and licensor of sporting goods and apparel under
the Everlast brand name, today announced the signing of its
largest license agreement to date with Jacques Moret, Inc.
of New York City. As of January 1, 2005, this new agreement
grants Moret, a major supplier to the US women’s apparel
market, a license for Everlast women’s apparel in the United
States.
Under the terms of the five-year agreement, Jacques Moret,
Inc. will pay approximately $12.5 million in minimum
guarantees to Everlast, noting that strong potential royalty
earnings in excess of this amount are possible. At the end
of this initial five-year term, Moret has the option to sign
a ninety-nine year license for women’s apparel rights for
approximately $30 million. Additionally, Moret will assume
and pay for all women’s apparel inventory purchased by
Everlast, future advertisements previously placed by the
company and other transitional costs associated with the
women’s business.
George Horowitz, chairman, CEO, and president of Everlast
said, “Everlast has achieved tremendous success from
operating its own women’s apparel business. We came to the
conclusion that the brand would greatly benefit from
licensing the women’s apparel category to Jacques Moret,
Inc., one of the industry’s leading suppliers. As a result
of this agreement, the women’s line will benefit from
Moret’s abilities for sourcing due to economies of scale. In
addition, this agreement with Moret will result in expanded
distribution opportunities that are available to large
apparel companies such as Moret. We are quite familiar with
the management of Moret and their strengths, as we granted
our Canadian women's apparel license to them earlier this
year. This helped to make the decision to grant this license
for US women's apparel an easy one."
Horowitz continued, “Distribution levels of Everlast women’s
apparel will remain unchanged and will continue to be
focused on department and specialty stores, mid-tier stores
as well as sporting goods retailers. Further, this new US
women’s apparel license complements our licensing agreement
with FuDa for US women’s outerwear and wind wear. Also, our
license with the famous Parisian designer and apparel
retailer, agnes b, will continue to have its US stores
supplied with our goods from Europe.”
In order to facilitate a smooth transition and continued
Everlast growth, Jacques Moret, Inc. has agreed to hire key
sales, merchandising, and operating personnel previously
employed by Everlast's women's apparel division. Orders
already placed with Everlast for spring and summer women’s
apparel will be fully shipped in joint efforts between
Everlast and Jacques Moret, Inc. during the transition
period. Customer satisfaction and avoidance of disruptions
will be a top priority for both companies.
Joey Harary, president of Jacques Moret, Inc. stated,” We
are extremely excited with our relationship with Everlast.
We have every belief that we will be able to put the
resources behind Everlast women’s apparel that will result
in a significant expansion of shelf-space and an increase in
Everlast’s brand equity.”
He continued, “Over the past four years, the management of
Everlast Worldwide has taken the brand to new heights of
consumer awareness through innovative marketing and
merchandising programs. Their ability to execute one major
brand exposure campaign after the other, through product
placement in the critically-acclaimed movie Million Dollar
Baby to the anticipated unscripted drama, The Contender,
produced by Mark Burnett Productions and DreamWorks, has
quite frankly amazed us.”
George Horowitz concluded by stating, “Licensing women’s
apparel to Jacques Moret will allow Everlast management to
focus its talents and efforts on our US men’s apparel,
professional and retail boxing equipment and worldwide
licensing businesses, which have achieved double digit
growth rates during 2004. In addition, by streamlining our
apparel businesses, we believe we will be able to identify
and execute even more cost containment initiatives that will
start to benefit Everlast’s operating results, commencing in
2005.”
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