Boss, Movado license agreement

The German fashion concern Hugo Boss has signed a global licensing agreement with watchmaker Movado, according to which the latter will start manufacturing watches for Boss in March 2005.

The Movado Group announced last week that the two companies will collaborate on the design, production and manufacturing of a watch collection under the brand names Boss and Hugo. According to the deal, Movado has exclusive rights to manufacture and distribute the entire collection of watches. Hugo Boss retail locations and a selection of wholesale distribution outlets in the US, Europe and Asia will sell the watches.

The CEO and Chairman of Hugo Boss AG, Bruno Salzer, stated in the Movado press release that the strategy of the company was "to cooperate with licensing partners that lead their markets and work successfully with powerful brands. In Movado Group, we feel sure we have found a partner capable of further extending our position in the superior fashion watch segment."

As of 21st March, when the deal becomes effective, the Movado Group will handle the international distribution of the existing Boss watch collections. Due to the new agreement, product launches will be limited in 2005. These are planned for spring 2006 at the BaselWorld fair in Switzerland.

Rick Cote, executive vice president and COO of the Movado Group said in the press release that the collection would focus "on the high end of the fashion watch category".

The US Movado Group designs, manufactures and distributes watches globally under its own brand name and also for Ebel, Concord ESQ, Coach and Tommy Hilfiger. Furthermore it operates Movado boutiques and company stores in the US.