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Karl Lagerfeld Joins Tommy HilfigerTommy Hilfiger Corp. - whose once-hot preppy clothing business has cooled - is making a play to rekindle growth by buying luxury brand Karl Lagerfeld.
Tommy Hilfiger said Monday that it is acquiring the trademarks of internationally renowned Karl Lagerfeld for an undisclosed cash amount. The transaction includes Lagerfeld Galleries and other Lagerfeld collections, but does not include Lagerfeld's agreements with Chanel and Fendi.
As part of Monday's deal, Lagerfeld will continue to design and provide creative direction for Lagerfeld's brands. The long-term contract is expected to draw upon the international reputation of Lagerfeld with the experience and global infrastructure of Tommy Hilfiger Corp.
Hilfiger generated sales of $1.87 billion in 2003, down 0.7 percent from the previous year.
Lagerfeld's collections are currently in a startup phase, and consist of a women's and licensed men's collection. They are distributed within select European and Asian markets. As part of Lagerfeld's global expansion efforts, his brands will be developed within the United States, particularly through upscale department and specialty stores. The goal is also to expand the distribution of Lagerfeld's women's and men's collections geographically, and grow across multiple categories.
The deal reflects the industry's latest obsessio
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December 14, 2004 | Viewed 21,163 time(s)
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