Watchmaker Movado Group has announced the extension of its licensing agreement with German fashion brand Hugo Boss, expanding the duo’s partnership until December 31, 2024.
Included in the agreement is an option for Movado subsidiary, MGI Luxury Group S.A., to potentially further prolong the agreement for an additional five years, subject to certain conditions.
Among the updated terms, Movado has revised royalty rates, revisited the minimum sales targets, and updated marketing and advertising expenditure requirements for the period 2024 through 2031. New pricing arrangements have also been set for the sales from MGI to Hugo Boss and affiliates.
Movado additionally noted in the regulatory filing that the amendment follows a settlement made in August 2023 – acknowledged in the new agreement as resolved – during which Hugo Boss was compensated for formerly inadvertent overcharges on sales to specific affiliates.
The company said that it would seek confidential treatment for the terms of the amendment when it files its upcoming quarterly report ending October 31, 2024. It added: “This strategic move is expected to reinforce Movado's position in the luxury watch market by continuing its association with the prestigious Hugo Boss brand.”
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