MILAN — Valentino has signed a five-year licensing agreement with watchmaker Sector to roll out a line of luxury timepieces.
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The line, expected to generate retail sales of more than $147 million within the next five years, will be presented at the Basel watch fair next spring. Nearly $10 million has been allotted to promote the collection.
Dollar figures were converted from the euro at current exchange rates.
The watches will be sold in Valentino stores and other selected retail points. Valentino and Sector said the watches will be sold in the high-end price range and there are plans for a limited edition series of Valentino watches as well.
Sector, which makes watches for Roberto Cavalli, is controlled by Opera, a Bulgari-backed investment fund.
“I am sure that there will be a positive collaboration between me, my creative studio and the Bulgari style team to create watches with an innovative and unmistakable design,” Valentino Garavani said in a statement.
Marzotto, which owns Hugo Boss, bought Valentino this year and is relaunching the brand. Part of the plan is to roll out a younger, less-expensive Valentino line to compete directly with the likes of D&G and Emporio Armani. This line would be produced through a licensing agreement.
Sources close to the situation confirmed that Valentino will farm out production of the new line to Italian fashion group SINV Holding, the licensee for the labels Voyage Passion, See by Chloé, JPG Jean Paul Gaultier Jeans, Krizia Jeans and Gabriele Strehle Jeans. Valentino declined to comment and SINV did not return a call seeking comment.
Elsewhere, a plan to reorganize the Marzotto family’s assets has been put on hold. As reported, Industrie Zignago Santa Margherita, a holding company controlled by the Marzotto family, had offered to buy all outstanding shares in Marzotto SpA that the family did not already own. The offer was seen as a defensive move for the family to boost its stake in Marzotto and ward off any potential takeovers, given the slumping stock price.
But Zignago said Wednesday that not enough investors showed up for its shareholders meeting to approve the takeover offer for Marzotto, so the reorganization will not take place.