Just weeks after nixing a deal with watch brand Fossil, apparel manufacturer Guess announced a new 10-year global license agreement with Callanen International Inc., a Timex Corp. subsidiary.

Callanen has been producing and distributing Guess watches for more than 20 years. The new agreement begins on Jan. 1, 2007, according to a company release. In August, Guess and Fossil had announced they were close to signing a 10-year agreement that would have had Fossil manufacturing Guess watches. But, less than a month after the announcement, the deal fell through.

Instead, Callanen will run the Guess watch business through a newly formed subsidiary. It will continue to expand upon its worldwide network to market and distribute Guess watches globally. Minimum royalties under the Callanen agreement are based on wholesale sales of $1.45 billion for the initial 10-year term. Current annual worldwide wholesale sales of Guess and Guess Collection watches are approximately $150 million.

“We are extremely excited to continue working with Callanen to expand sales of Guess watches worldwide,” Paul Marciano, co-chairman and co-CEO of Guess, said in a company release issued Wednesday. “The new license agreement between Guess and Callanen extends one of our most successful partnerships in the history of our brand. We believe that the opportunities, especially for international growth, are very substantial.”


Source : nationalejeweler.com

www.nationaljeweler.com