Adams has forged a partnership with Sainsbury's to design, source and deliver the children's Tu range and has also posted a rise in pre-tax profits.
Adams sells own-label childrenswear in 160 Sainsbury's stores. This will be phased out by early 2005 and replaced by Tu, developed by Adams, for children up to the age of 13.
It has set up 70-strong team to work on the collection, headed by director Ian Cooper.
Separately, Adams weathered the tough clothing market with pre-tax profits up to£14.9 million from£13.4 million, on sales of£236 million in the year to July 31 last year. Sales for the previous full year were£234 million.
Chief executive Michael Hobbs said trading for the core Adams business was 'challenging', but its multi-channel, multi-brand strategy was proving successful.
'Our partnerships with Boots and Sainsbury's provide us with excellent growth opportunities. To capitalise on (this) we've made a multi-million pound investment in developing our distribution centre and IT systems.'