According to WWD Pirelli is banking on a new, five-year license to rev up its PZero brand.
The Italian tire and cable manufacturer, which has built a following with its hip, urban sportswear launched in January 2002, terminated its license with outerwear and sportswear firm Allegri. A new licensee will start producing and distributing the spring-summer 2006 PZero collection.
Pirelli said it split with Allegri because the company wanted to play a more “operative role” in the business. Underscoring the importance of Allegri in building the brand, Antonio Gallo, head of the PZero project, said he did not rule out future collaborations with the company.
PZero, which makes products for the Italian military, also distributes Tommy Hilfiger in Italy and manufactures under private label. The moves come as PZero adds other categories and looks to open its first brand store in Milan. It has a growing product stable under license,
including watches and footwear. Handbags are slated to bow in the fall.
PZero last year reported sales of $104 million, or 80 million euros at current exchange, a 30 % increase compared with the previous year. The company anticipates 20 percent growth in 2005.
The brand is distributed in 1,280 points of sale around the world. Eighty are in the U.S., including Bergdorf Goodman.