Tommy Hilfiger Reaches Mutual Agreement with Stride Rite to Bring the
Company's Men's and Women's Footwear License In-House
NEW YORK and LEXINGTON, Mass., March 5 /PRNewswire-FirstCall/ -- Tommy
Hilfiger Group and the Stride Rite unit of Collective Brands, Inc. (NYSE:
PSS) today announced that they have reached a mutual agreement under which
Tommy Hilfiger will bring its men's and women's footwear business in-house
effective January 1, 2009. Stride Rite will continue to remain a licensee
for the Tommy Hilfiger Kids footwear line through December 31, 2009.
Tommy Hilfiger Group and Stride Rite have had a relationship for more
than 10 years, with Stride Rite serving as the exclusive licensee of the
Tommy Hilfiger footwear brand in the United States. The existing license
was set to expire December 31, 2008. Collective Brands expects no material
financial impact in fiscal year 2008 as a result of this move.
"We have always had a very successful relationship with Stride Rite and
appreciate its valuable contributions to the brand over the past decade.
However, since the Tommy Hilfiger Group acquired Tommy Hilfiger Footwear
GmbH in 2007, the company that operates the footwear business
internationally under a separate license agreement, we have experienced the
benefits of having this type of dedicated expertise in-house," said Fred
Gehring, CEO of Tommy Hilfiger Group. "Therefore, we firmly believe that
bringing the U.S. footwear business in-house as well will allow us to
benefit from global economies of scale and further brand alignment."
As part of the transition plan, Stride Rite will deliver the full Tommy
Hilfiger Footwear collection for 2008. Several Stride Rite associates that
have been directly involved with the Tommy Hilfiger business will join
Tommy Hilfiger U.S.A., Inc.'s newly created Tommy Hilfiger Footwear
division, and report to Anne Marino, President of Tommy Hilfiger Licensing.
"The Tommy Hilfiger team has been a great business partner, and we look
forward to continuing our relationship with the Tommy Hilfiger Kids
business," said Gregg Ribatt, chief executive officer of Stride Rite. "This
transition plan is very thorough and ensures the utmost commitment to the
brand and to our customers. Furthermore, for Stride Rite, it allows our
teams to focus on the key opportunities before us with our owned brands
such as Sperry Top-Sider, Saucony and Keds, as well as our Stride Rite
Children's Group business."
The Tommy Hilfiger Footwear collections will continue to be distributed
through high-quality distribution networks, as well as in Tommy Hilfiger's
own specialty stores in the United States.
About Tommy Hilfiger Group
Tommy Hilfiger is a leading premium lifestyle brand and one of the
largest designer apparel brands globally. Tommy Hilfiger Group designs 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.
About Collective Brands, Inc.
Stride Rite, a unit of Collective Brands, Inc., is focused on lifestyle
and athletic branded footwear and high-quality children's footwear sold
primarily through wholesaling, with its brands including Stride Rite(R),
Keds(R), Sperry Top-Sider(R), Robeez(R), and Saucony(R), among others. The
Stride Rite Children's Group markets the leading brand of premium
children's footwear in the United States under such brands as Stride
Rite(R), Saucony(R) Kids, Born(R) Kids, Sperry Top-Sider(R) Kids, and Tommy
Hilfiger(R) Kids, among others. For over 85 years, the company has designed
and engineered footwear specifically to meet the needs of growing children.
Collective Brands, Inc. (NYSE: PSS) is a leader in bringing compelling
lifestyle, fashion and performance brands for footwear and related
accessories to consumers worldwide. The company operates three strategic
units covering a powerful brand portfolio, as well as multiple price points
and selling channels including retail, wholesale, ecommerce and licensing.
Collective Brands, Inc. includes Payless ShoeSource, focused on
democratizing fashion and design in footwear and accessories through its
more than 4,500-store retail chain, with its brands American Eagle(R),
Airwalk(R), Dexter(R), Champion(R) and designer collections Abaete for
Payless, Lela Rose for Payless and alice + olivia for Payless, among
others; Stride Rite, focused on lifestyle and athletic branded footwear and
high-quality children's footwear sold primarily through wholesaling, with
its brands including Stride Rite(R), Keds(R), Sperry Top-Sider(R),
Robeez(R), and Saucony(R), among others; and Collective Licensing
International, the brand development, management and global licensing unit,
with such youth lifestyle brands as Airwalk(R), Vision Street Wear(R),
Lamar(R), Sims(R), LTD(R), genetic(R), Dukes(R), Rage(R), Ultra-Wheels(R),
and Skate Attack(R). Information about, and links for shopping on, each of
the Collective Brand's units can be found at
http://www.collectivebrands.com.
SOURCE Collective Brands, Inc.
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Related links:
http://www.collectivebrands.com
CONTACT:
Alexandra Cohan Spritzer of Tommy Hilfiger
U.S.A., Inc., +1-212-548-1343; or Media, Mardi Larson,
+1-612-928-0202, or Financial, James Grant, +1-785-559-5321, both
of Collective Brands, Inc.
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