Quiksilver, Inc. announced Tuesday that it has enteredinto a licensing agreement with LF USA, a subsidiary of Hong Kong-based Li & Fung Limited. The deal will allow LF USA’s Kids division to design, manufacture and market children’s apparel under the Quiksilver and DC brands.
“With strong brand heritage and consumer appeal, Quiksilver and DC are natural additions to our Kids division’s prominent portfolio of licensed brands,” said Dow Famulak, CEO and President of LF USA.
“By leveraging our extensive expertise in the children’s market, coupled with our global sourcing capabilities and deep retail relationships, we believe there is an excellent opportunity to build on the legacy of these brands and significantly expand their reach and volume,” Famulak added.
In turn, Andy Mooney, chief executive officer of Quiksilver Inc. stressed that “LF USA is a highly regarded leader in the children’s apparel industry. We believe their size, scale and expertise will help us grow our kids business and we are thrilled to have LF USA as a partner. Moreover, this relationship is in line with our profit improvement plan, enabling us to focus our energies and resources on our core apparel business and significantly reduce product styles and SKUs in our supply chain.”
The financial terms of the deal remain private although both parties advanced that the agreement will be effective in the Americas in early third quarter 2014.