Big Deal in Womenswear

The Calvin Klein division of Phillips-Van Heusen Corp. (New York) has tapped apparel giant Kellwood Co. (St. Louis) to produce a new women's sportswear line for U.S. department stores.

The agreement ends a fierce battle within the highly competitive apparel market. Kellwood beat out Jones Apparel Group, which is seeking new growth opportunities after a high-profile feud with Polo Ralph Lauren Corp. Jones recently announced it was no longer producing Polo's Ralph by Ralph Lauren line.

Financial terms of the licensing agreement were not disclosed. The Calvin Klein women's collection, which will likely debut in spring 2004, will operate as a separate division of Kellwood. Calvin Klein Inc. will have design approval and control branding, advertising and public relations for the line.

“This is the right time for us to be launching this business, and I couldn't be more pleased about the people whom we'll be working with,” designer Calvin Klein said in a statement.

The new Calvin Klein women's collection is projected to generate wholesale revenues of more than $500 million annually, company officials said. The new line will complement Klein's sportswear business for men.

Phillips-Van Heusen, the world's largest shirt maker, acquired Calvin Klein in December 2002 in a deal valued at $430 million. Kellwood, which sells to mass-merchandiser chains and department stores, is a $2.2 billion marketer of apparel and accessories. Its brands include Sag Harbor, Koret and David Dart.