Nautica Enterprises (Nasdaq: NAUT) today announced that the Company's licensing division, Nautica Apparel, Inc., will be ending its license agreement with Apparel Ventures, Inc., the manufacturer of Nautica Women's Swimwear, effective June 30, 2003. This was a mutual decision by both parties and will have no impact on the manufacturing and distribution of the product throughout this time. Net royalties received from the Nautica Women's Swimwear business represents approximately 8% of the Company's expected net royalty income for fiscal 2003.
“We have enjoyed partnering with Apparel Ventures and together, have built one of the most successful women's designer swimwear businesses in the market,” comments Christopher Heyn, President of Nautica Apparel, Inc. “However, as we continue to evolve the Nautica brand swimwear concept and look for ways to extend it into other product categories, both companies have concluded that it is in their best interests to explore other opportunities. We feel that the solid foundation we have created will assure the Nautica Women's Swimwear business continued success. We look forward to a seamless transition over the next nine months.”
Nautica Enterprises, Inc., through its subsidiaries, designs, sources, markets and distributes apparel under the following brands: Nautica; Nautica Competition; Nautica Jeans Company; Earl Jean; John Varvatos; E. Magrath; and Byron Nelson.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations of future events and are subject to a number of risks and uncertainties that may cause the Company's actual results to differ materially from those described in the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These factors and uncertainties include, among
others: the risk that new businesses of the Company will not be integrated successfully; the risk that the Company will experience difficulties with respect to the transitioning and ramp-up of its new distribution facility; the overall level of consumer spending on apparel; dependence on sales to a limited number of large department store customers; risks related to extending credit to customers; actions of existing or new competitors and changes in economic or political conditions in the markets where the Company sells or sources its products; risks associated with consolidations, restructurings and other ownership changes in the retail industry; changes in trends in the market segments in which the Company competes; risks associated with uncertainty relating to the Company's ability to launch, support and implement new product lines in the United States and Europe; effects of competition; changes in the costs of raw materials, labor and advertising; and, the ability to secure and protect trademarks and other intellectual property rights. These and other risks and uncertainties are disclosed from time to time in the Company's filings with the Securities and Exchange Commission, including the “Forward-Looking and Cautionary Statements” section of the Company's Annual Report on Form 10-K for the fiscal year ended March 2, 2002, in the Company's press releases and in oral statements made by or with the approval of authorized personnel. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.
Contacts: Wayne A. Marino, Senior Vice President, Chief Financial Officer
Shannon L. Froehlich, Vice President, Corporate Investor Relations