Liz Claiborne Inc. said Thursday that its namesake line of clothing will be sold exclusively at J.C. Penney Co., as part of a 10-year deal that the clothing maker hopes will help reverse its fortunes.
Shares climbed 81 cents, or 16 percent, to $6.02 in morning trading
Under the licensing agreement, the Plano, Texas-based chain will be the sole U.S. department store to sell the company's lines of women's wear, along with its Liz & Co. and Concepts by Claiborne brands. The deal also includes accessories, shoes, household products and men's clothing.
Liz Claiborne, which has said it expects to post a 2009 operating loss, said Thursday that it expects an operating profit in 2010 because of the agreement.
An expanded line of Claiborne-branded items will be available at JCPenney next fall.