SYDNEY: Australian apparel supplier Gazal Corporation plans to sever its ties with leisurewear brand Nautica. The Sydney-headquartered company has announced it will not renew its Australian and New Zealand Nautica license after it expires on December 31, 2008. As part of the expiry arrangement, Gazal confirmed it would continue to operate the Nautica wholesale business until June 30, 2009 and the five Nautica retail stores through to August 31, 2009.
The company planned to convert some or all of the stores into other Gazal owned or licensed brands from summer 2009. The move is expected to have little or no impact for Gazal's 2009 financial year but executives admitted they was "uncertain" how it would effect earnings for 2010 and beyond.
Gazal Corporation recorded an after tax profit of $9.5 million for the year ended June 30, 2008. This was an increase of 19.3 per cent on the previous year. Sales revenue was up 4.7 per cent on the previous year to $247.5 million.
Key Gazal brands include Calvin Klein, Van Heusen, Bisley, Davenport and Midford.