Tommy Hilfiger buys up Karl Lagerfeld brands

13th December 2004, Comments 0 comments

PARIS, Dec 13 (AFP) - US fashion company Tommy Hilfiger announced Monday it had bought up clothing brands belonging to the stylist Karl Lagerfeld for an undisclosed sum.

PARIS, Dec 13 (AFP) - US fashion company Tommy Hilfiger announced Monday it had bought up clothing brands belonging to the stylist Karl Lagerfeld for an undisclosed sum.

The deal does not include Lagerfeld's contracts with Chanel and Fendi, a joint statement said.

It covers collections such as Lagerfeld Gallery, and also signs the German-born designer into a long-term contract during which he will provide the creative direction for the brands.

Tommy Hilfiger intends to sell Lagerfeld brand clothing through US department stores and boost its marketing worldwide as part of a group strategy to become a major global fashion player.

"This acquisition is an important first step in our long-term strategy of building a multi-brand portfolio of business," the head of the Tommy Hilfiger Corporation, David Dyer, said in the statement.

"The Karl Lagerfeld name has tremendous cachet.... We see Mr Lagerfeld's brands as contributing significantly to revenue and earnings over the long term."

Lagerfeld brands will be developed in the United States, notably through major luxury department stores and specialised shops. The goal is to broaden the geographic distribution of Lagerfeld's collections for men and women and exploit growth possibilities in multiple categories.

Lagerfeld said in the statement that he had been looking for a company with a global reach and extensive resources and infrastructure.

Tommy Hilfiger Corporation creates, produces and markets sport clothes for men and women as well as children's apparel. Thanks to licensing arrangements, it also offers shoes, perfume and interior furniture.

The brand is marketed in the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and elsewhere in Asia.

© AFP

Subject: French News

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