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Lauder/Karan licensing deal provides international platform for Donna Karan expansion.

This article was originally published in The Rose Sheet

Executive Summary

LAUDER/KARAN LICENSING AGREEMENT TO ELIMINATE $7 MIL. BEAUTY DEBT the apparel maker would have recorded for the year if no deal had been struck, the fashion house said. The agreement will allow Donna Karan to "substantially eliminate its loss" from the beauty business, the company said. Under the strategic licensing agreement announced jointly by the companies Sept. 30, Estee Lauder will obtain exclusive worldwide rights to Donna Karan's international trademarks. Lauder will control the manufacturing, marketing, distribution and sale of all Karan beauty and beauty-related products. Terms of the Lauder deal, which begins officially in February, were not disclosed.
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