Movado Signs Watch Deal with Hugo Boss

Watchmaker Movado Group signed a long-term worldwide licensing agreement with fashion group Hugo Boss to design, produce and market a collection of watches under the Boss and Hugo brand names. Financial terms of the agreement were not disclosed.

 

The agreement, announced Thursday, grants Movado the exclusive rights to manufacture and distribute a full collection of fashion watches. The collection will be sold through select wholesale distribution outlets in Europe, the United States and Asia, as well as Hugo Boss retail locations.

Starting March 21, 2005, when the agreement goes into effect, Movado will be responsible for the worldwide distribution of existing Boss watch collections.

Movado will introduce a few products during the coming year, but major new product launches are planned for spring 2006 at the Watch & Jewelry Fair in Basel.

The company says that it expects the results of the Hugo Boss watch business to be “immaterial” during the company's next fiscal year, ending January 31, 2006.

According to Rick Cote, Movado Group Executive Vice President and COO, “The Hugo Boss watch collection will feature compelling identifiable designs combined with high quality craftsmanship. The collection will focus on the high end of the fashion watch category."

"Our strategy is to cooperate with licensing partners that lead their markets and work successfully with powerful brands," said Dr. Bruno Salzer, CEO and Chairman of Hugo Boss AG, of the decision.

Movado is behind the watch brands Movado, Ebel, Concord, ESQ, Coach and Tommy Hilfiger.