BOSTON — The Mossimo collection is lined up for two more years at Target Stores.
The Minneapolis-based retailer has extended its trademark license agreement with Mossimo Inc. until Jan. 31, 2006. At that time, Target will have the option on another two-year extension.
Target retailer recently renewed its deal for the Cherokee brand until 2005. The company’s flagship mass-market chain currently carries Mossimo-branded men’s, women’s and children’s apparel as well as some bath, body and hair care products. Successful from its inception in 2001 when it did upward of $700 million in sales volume, the Target license performance has been strong enough to propel Mossimo stock back to trading on the Nasdaq. For the first nine months of 2002, the agreement generated $17.2 million in royalties for Mossimo, as compared with $14 million for the same period in 2001.
The sportswear house is still working to sign licenses with other retailers following its May 2002 deal for a three-year license with Hudson Bay Co. Mossimo brand merchandise is expected to arrive at 350 Zellers doors this year.