St. John Taps Raj Manufacturing Inc.

With the fashion world’s growing appetite for high-end swimwear, women’s better apparel maker St. John Knits Inc. is ready to take a multi-million-dollar plunge.

The Irvine, Calif.–based high-end apparel maker announced that it has signed a long-term licensing agreement with Raj Manufacturing, which will co-design, produce and distribute the designer line, set to have a soft launch for mid- Spring 2004.

Both companies declined to discuss details of the agreement.

Currently, Raj’s brand portfolio consists of contemporary and active swimwear labels, including Guess? Swimwear, Guess Collection and O’Neill, as well as in-house labels Athena Pick Your Fit and Next by Athena, produced at its 110,000-square-foot vertical facility in Tustin, Calif. The company also produces private-label swimwear for Eddie Bauer, Lands’ End, L.L.Bean and Pacific Sunwear.

According to Alex Bhathal, Raj’s executive vice president of planning, the deal “will expand our distribution to premiere outlets and diversify our brand portfolio. Signing St. John continues our strategy of differentiating our company through design and quality.”

Kelly Gray, St. John’s co–chief executive officer and creative director said: “The customer wants to have fashionable swimwear, but she also wants to look appropriate in her suit. She’s looking for a good fit, a flattering silhouette and the glamour that is signature St. John.”

Indeed, St. John has shown aggressive interest in branching out into new categories. Last June, the company hired Robin Bull as senior vice president of licensing. Previously, Bull worked as interim chief financial officer at Dolce & Gabbana U.S.A.after spending some time at Calvin Klein as senior vice president of licensing. This month, St. John launched an exclusive line of apparel, accessories and home deacute;cor for Neiman Marcus, Bull said.

Raj’s 10-member design team will work closely with Gray on the line’s design direction.

Both companies will co-design a swim collection that complements St. John’s ready-towear and couture collections. The swim line is slated to have three categories: St. John Sport, St. John Collection and St. John Couture.

“There’s not a lot of glamour in swim anymore,” Bull said. “There’s a void in the designer swim market because you’re either looking at European brands that don’t offer a lot of coverage, or contemporary brands that are too youthful and lack a true fashion spirit because they’re too active-inspired.”

Wholesale price points will range from $50 to $175 and be geared toward the St. John customer, ranging in age from 30 to 60. The collections’ silhouettes include tankinis, halter tops, one-piece suits, underwire bras, side-tie bottoms, boy shorts and retro-inspired bottoms. The line will include signature St. John prints that coordinate with the St. John’s apparel line, but Raj will also design fabrics for the swim collection, Bhathal said. Details will include signature hardware with the St. John seal, embroidery, appliqueacute;s, Swarovski crystals and beaded embellishments.

St. John Swim will officially bow at the July 17–21 run of the Miami Swim Show in Miami, with initial deliveries set to begin for Cruise 2005.

The line will be sold at St. John boutiques, as well as at select better retailers, including Neiman Marcus, Saks, Nordstrom and Bloomingdale’s. Both companies declined to give sales projections, although they estimate the line will sell approximately 25,000 units in its first season.

Raj plans to hire a separate sales team for the St. John swim line, Bhathal said.

Ann Stordahl, senior vice president general merchandise manager at Neiman Marcus, is eager to view the line. “Neiman Marcus believes that St. John will be a natural for swimwear, especially given their strong presence in St. John Sport,” she said.