I would say If another company trademarked the name before you, and they trademarked it under the category of apparel, then you are using their name illegally. You could very likely receive a cease and desist, or even a lawsuit against you.
I am not an attorney and this is just my opinion, if I were you and you intend to continue using this name, I would contact an intellectual property attorney to get advice. That is really the only reliable place you are going to get correct legal advice.
It doesn't really matter who has better designs

Its more of a legal issue and who filed first.
Hope this helps
