Fifth & Pacific Sells Juicy Couture

juicy-190Fifth & Pacific Companies said on Oct. 7 that it agreed to sell the intellectual property of the Juicy Couture brand to Authentic Brands Group for $195 million cash. The transaction is subject to customary closing conditions and is expected to occur in November.

In a press release, Fifth & Pacific CEO William L. McComb said his company agreed to sell Juicy Couture so it could focus on its Kate Spade division.

“Ultimately, this is all about bringing Kate Spade to its full potential,” McComb said.

Fifth & Pacific announced in its second-quarter earnings results that net sales for Kate Spade were $167 million, a 65.3% increase compared to 2012. Its direct sales were up 27% for the quarter. Meanwhile, Juicy Couture’s net sales were $94 million, a 10.7% decrease compared to 2012, which primarily reflected decreases in our wholesale apparel and wholesale non-apparel operations. Its direct-to-customer segment was down 4%

McComb said Fifth & Pacific Brands is also considering a sale of its Lucky Brand Jeans division. Lucky Brand Jeans saw a sales decrease of 2% in the second quarter, though its direct sales rose 2%.

Authentic Brands Group’s Brands include luxury brands Marilyn Monroe, Judieh Leiber and Hickey Freeman.

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