Clothing designer and marketer Nautica Enterprises Inc on Tuesday announced the ending of its licensing agreement with Apparel Ventures Inc for the production of Nautica Women's Swimwear.

The New York-based company said the decision to terminate the agreement at the end of next June was "mutual" and will have no impact on the manufacturing and distribution of the product throughout this time.

It added net royalties received from the Nautica Women's Swimwear business represents approximately eight per cent of the its expected net royalty income for fiscal 2003.

"We have enjoyed partnering with Apparel Ventures and together, have built one of the most successful women's designer swimwear businesses in the market," commented Nautica Apparel president Christopher Heyn.

"However, as we continue to evolve the Nautica brand swimwear concept and look for ways to extend it into other product categories, both companies have concluded that it is in their best interests to explore other opportunities.

"We feel that the solid foundation we have created will assure the Nautica Women's Swimwear business continued success. We look forward to a seamless transition over the next nine months."