Tommy Hilfiger Corporation today announced an agreement under which its subsidiary, Tommy Hilfiger Europe B.V., will acquire the rights to full distribution and management of the Tommy Hilfiger brand and products in Italy. The transaction includes the purchase of these rights from the existing unrelated distributor, Fincom SPA, and marks a transition whereby the Company will directly own and operate all Tommy Hilfiger business in Italy. The Company plans to expand the business in Italy through its wholesale and retail segments. This opportunity provides the Company with greater direct control and impact over all areas of the business in Italy, including operations, sales and marketing. The transaction is expected to close in April 2005.
Fred Gehring, Chief Executive Officer of Tommy Hilfiger Europe, stated, “After four very successful years in the Italian market with our partner, Fincom Spa, we now believe that Tommy Hilfiger Europe is ready to integrate the Italian sales and marketing activities into the overall European organization. We intend to step up marketing support for the Italian business, and expect that Italy can and will be one of the biggest European markets for the Company in the future.”
David F. Dyer, President and Chief Executive Officer of Tommy Hilfiger Corporation, said, “Overall, our business in Europe has grown enormously since its launch in 1997, with projected net revenue in excess of $500 million for the fiscal year ending March 31, 2005. As part of our strategy to control the brand and continue the growth momentum for Tommy Hilfiger in global markets, support for the expansion of our business in Europe is a top priority. Our management team in Amsterdam has proven successful in developing a premium market position along with solid revenue and profit growth across Europe, and we expect that the acquisition of the Italian business will extend that success.”
Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear under the Tommy Hilfiger trademarks. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance and home furnishings. The Company's products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Company's own network of outlet and specialty stores in the United States, Canada and Europe.
