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Nautica Brand Flounders At Dillard's

Dillard's, the country's second largest department store chain behind Macy's in terms of sales, plans to stop carrying the Nautica men's sportswear collection -- the khakis, dress shirts and sweaters that have long served as the brand's cornerstone.

Dillard's will replace the products with its own private label beginning early next year, sources say. Eric Wiseman, the president and soon-to-be CEO of Nautica parent VF Corp., confirms the pullback, but says Dillard's will continue to carry some merchandise under the Nautica name, including women's clothing and home goods. He says the men's sportswear sold at Dillard's accounted for less than 10% of the brand's overall sales.

The big department store chains such as Macy's have increasingly replaced branded goods with private label and demanded exclusive deals from suppliers. A Macy's spokesman says it has no plans to cut back its Nautica offerings.

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