AMSTERDAM, Netherlands, Jan. 8 /Xinhua-PRNewswire/ -- The Tommy Hilfiger Group today announced it has entered into an agreement that, through a series of steps, will result in the Group acquiring majority control of Tommy Hilfiger Japan Corporation ("THJC"), currently owned by Itochu Corporation. Terms of the transaction have not been disclosed.
Established in 1996, THJC is the exclusive licensee of Tommy Hilfiger-branded products in Japan, which THJC brings to market through its network of 105 freestanding retail stores and 60 department store concessions, as of November 2007. In calendar 2006, THJC had net sales of Yen15.1 billion (EUR103 million; $129 million). For the three years ended 2006, THJC’s revenues increased at a compound annual growth rate of over 20%.
"We believe that there is potential for substantial continued growth in Japan for Tommy Hilfiger. Under Itochu’s leadership, THJC has done an outstanding job in positioning the brand and building a very meaningful business. The integration of THJC will help to build upon the success that has already been achieved. This acquisition is in line with our strategy to pursue opportunistic buybacks and acquisitions of licensees, consolidating brand management and enhancing our international presence by approaching various markets in an increasingly globally coordinated manner while leaving ample room for local interpretation and adaptation. We welcome the THJC team into the Tommy Hilfiger Group and we are especially pleased that the existing management team will continue to lead the business into the future," said Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group.
About Tommy Hilfiger Group
Tommy Hilfiger is a leading premium lifestyle brand and one of the largest designer apparel brands globally. Tommy Hilfiger Group, through its subsidiaries, designs, sources and markets men’s and women’s casual wear, sportswear, jeans, children’s wear and footwear. The Group’s products can be found in its network of dedicated retail stores in Europe, the United States and Canada, as well as in leading specialty and department stores throughout Europe and North America. Through over 40 licensees, Tommy Hilfiger-branded products, including a broad array of related apparel, accessories, fragrance and home furnishings, are distributed worldwide, including in Mexico, Central and South America, Japan, Australia, India, China and elsewhere throughout Asia.
