Thursday, apparel and accessories provider Liz Claiborne Inc. (LIZ) said it inked a long-term licensing agreement with J. C. Penney Company, Inc. (JCP) under which JCPenney will become the exclusive department store destination for all Liz Claiborne and Claiborne branded merchandise in the United States and Puerto Rico. In a related deal, Liz Claiborne agreed to offer the prestigious Liz Claiborne New York line on QVC, Inc. stores. After the announcement, Liz Claiborne stock gained more than 20% in morning trading on the Nasdaq.
With the agreement, all Liz Claiborne merchandise at JCPenney, including about 30 merchandise categories, will now be sold in JCPenney's better/best pricing category. Liz Claiborne will lead the design process and JCPenney will be responsible for sourcing, production, marketing and distribution and both firms together will merchandise the brand.
The agreement has a term of up to 10 years beginning in August 2010. At the end of year five, JCPenney will have the option to acquire the licensed trademarks and other Liz Claiborne brands for use in the U.S. and Puerto Rico. JCPenney will also have the option to take ownership of the marks in the same territory at the end of year 10. Liz will receive design service fees and royalties as a percent of sales plus gross profit sharing with guaranteed minimums, with Liz retaining the rights to market and distribute the Liz Claiborne, Liz & Co., Claiborne and Concepts by Claiborne labels outside of the U.S.
Following these agreements, the New York-based company expects the Liz Claiborne wholesale brand franchise to swing from a meaningful adjusted operating loss in 2009 to a targeted adjusted operating profit in 2010.
Liz Claiborne chief executive officer William McComb said, "After two very successful years partnering with JCPenney, we decided it was time to take it to the next level. The commitment, the connection to the consumer and the brand stewardship JCPenney has brought to the table have been nothing short of outstanding."
Under the multi-year agreement with multimedia retailer QVC, Inc., Liz Claiborne will offer the Liz Claiborne New York line on QVC stores. Isaac Mizrahi, the creative director of Liz Claiborne, will design the line of premium apparel, accessories and home products, QVC will merchandise and source the product, with Liz Claiborne receiving royalty on net sales. Liz Claiborne New York will exit the department store channel fully after Holiday 2009.
As part of the deal which gives renewal rights to Liz Claiborne, QVC will have the rights to use the Liz Claiborne New York brand with Isaac Mizrahi as creative director on any apparel, accessories, or home categories in their U.S. and international markets.
LIZ is trading at $6.64, up $1.26 or 24.23%, on a volume of about 6.28 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.