Tommy Hilfiger Corporation

Line

• Fred Gehring (CEO)
• Joel J. Horowitz (Chairman)

The Tommy Hilfiger Corporation is one of the American fashion designer Tommy Hilfiger was founded in 1984, internationally operating fashion company. The company is based in Amsterdam since 2006. Since 2010, the company is owned by the US-based Phillips - Van Heusen Corporation, owner of the Calvin Klein brand.

Corporate Development

Beginnings in New York

In 1985, the first men's collection by fashion designer Thomas ' Tommy ' J. Hilfiger through financial support and licensing agreements with the Indian -born American textile entrepreneur Mohan Murjani in New York City has been put on the market. Murjani had established his company Murjani International, the Gloria Vanderbilt jeans brand in the U.S. and he owned a Coca -Cola clothing line. Hilfiger had established the company named after him in 1984, after he had tried as early as 1980 with a short-lived fashion line called Rodeo. Hilfiger Fashion distinguished himself as casual sportswear with a rectangular logo in the colors of the U.S. flag from ( Hilfiger itself derives the color combination of the nautical flag alphabet ago) was priced located slightly below the main competitor Ralph Lauren and has been media coverage of large- Werbeplaktaten, for example, in Times Square in New York, advertised. With the slogan "The four great American designers for men are:. RL, PE, CK, TH " (Eng. ' The four great American designers for men are: RL, PE, CK, T- H') took on the almost unknown Hilfiger confidently implicitly on a par with the design sizes Ralph Lauren, Perry Ellis and Calvin Klein. This approach, although highly successful, Hilfiger took the disfavour of the established designer colleagues and a reputation as a " ruthless self- promoter " one. The so-called ' Preppy' look was, and is, like Ralph Lauren, a trademark Hilfiger. He also added to his sportswear, which he called " classics with a twist " designated (Eng. ' classic with a twist '), little details added, such as a different color be embroidered buttonholes, different color jacket lining or backed with fabric polo shirt collars. In subsequent years, was also favored by further targeted advertising campaigns, a very rapid growth of the company with company formation gradually in many countries.

Rise and expansion

In 1988, the Tommy Hilfiger Co., Inc. was founded and the investor Murjani, which was experiencing financial difficulties because the Coca -Cola Clothing line had been abandoned, paid and bought back the loans granted to him licenses and brand names. Based in Hong Kong, founded by entrepreneurs Silas Chou and Lawrence Stroll, Sportswear Holdings Ltd.. participated with $ 100 million majority stake in the Hilfiger Group, which benefited the two entrepreneurs in Asia as a result of branchy production and distribution network. Hilfiger himself retained 22.5 % of the company. The annual sales increased continuously: $ 28 million ( 1989), $ 50 million ( 1990), $ 100 million ( 1991). 1992 Tommy Hilfiger was successfully listed on the New York Stock Exchange. In the following years, the first Hilfiger stores were opened. In 1993 the sales were $ 138 million, of which $ 57 million profit made ​​. Mid-1990s was the Hilfiger brand and its preppy fashion known to be supported by so-called associated with hip hop music ' Ghetto -Kids ' in the big cities in oversized sizes ( baggy look), whereupon the company finally on short run successfully responded by offering the same clothing in extra large sizes and adorned with enlarged logo and the preppy look neglected. As the rapper Snoop Dogg in March 1994 on Saturday Night Live wearing a Hilfiger shirt, Hilfiger captured the Rapper scene and the street fashion market; the sales figures soared higher still. At the same time, however, the prestige of the brand Tommy Hilfiger and the preppy clientele fell was scared. The condemnation of his fellow designers got Hilfiger to feel, as the Council of Fashion Designers of America in 1994 ruled his award for menswear designer of the year ( Menswear Designer of the Year ), was traded for the Hilfiger as a safe candidate, in just not to give this year. Hilfiger then got him in 1995.

At the same time, the sporting Hilfiger Athletics collection was presented, launched boys' fashion branded Hilfiger and expanded its licensing business with accessories and home furnishings. The successful men perfume Tommy appeared 1994. 1995 were first produced by Pepe Jeans Hilfiger jeans offered. The London-based jeans manufacturer Pepe had been bought specifically for this purpose for $ 100 million. The company's sales continued to increase, and in addition to numerous shop-in -shop at large department stores further Hilfiger stores were opened. The first time a women's collection was launched in 1996, which produced under license by Pepe Jeans was presented at the London Fashion Week. The Ladies Perfume Tommy Girl was successfully brought to market with Estée Lauder, more scents followed. 1997 in Amsterdam, the European headquarters of Hilfiger, Tommy Hilfiger Europe BV, founded and established the brand under license in the European market. The Dutchman Fred Gehring, a longtime business partner of Lawrence Stroll and was CEO. For the European fashion, which was positioned higher in this period than the American Hilfiger mode and a " high-quality reputation " enjoyed a design team in Amsterdam was compiled. 1998 Jeans -heavy Hilfiger Denim collection was launched in Europe and a European license for upscale menswear, Tommy Hilfiger Tailored Clothing, the clothing specialists Strellson (later Holy Fashion Group) awarded. The Tommy Jeans collection debuted in 1999 Also in 1999, the website went online tommy.com, a girl collection was offered and the Hilfiger annual sales totaled $ 1.63 billion in the late 1990s, there was for a short time -. Than in retrospect failed strategy of the stigma of the ghetto Street fashion get away - the high-priced and high-fashion, made ​​in New York Red Label Designer Collection, as well as the Italian-made, classic White Label Hilfiger collection each for men and women. 2000 Golf and swimwear was added to the portfolio. These projects resulted, however, that the rappers and hip-hop scene of the Hilfiger retired while new buyers could not be developed enough or not.

Declines in sales and sales

With the turn of the millennium, the sales figures declined in the U.S., the brand lost its appeal, although sales rose to the European markets. The share price had fallen from 1999 to 2000 by 75 %. 2002 had to be closed 37 of 44 Hilfiger stores. The flagship store in London's Bond Street and precious mile Beverly Hills ( Rodeo Drive) were classified as strategic mistakes and also closed - the local buyers, although wealthy, was too old for the brand Hilfiger. Chou and Stroll withdrew from the company and bought shares in the fashion brand Michael Kors. 2001, the license for the European market for $ 200 million was repurchased. In 2002, the first European Hilfiger store was opened in Dusseldorf. Early 2000s hurt a tax evasion complaint, which was closed in 2005 after repayments, however, and complaints of the shareholders own the company. It was considered whether Hilfiger fashion should be sold at Wal -Mart, even if Wal-Mart should take over the company Hilfiger. In retail sales plunged by up to 75 %. The quantities have been reduced, introduced narrower silhouettes, rejuvenates the collections. 2004 came the upscale H Hilfiger collection joined the portfolio, which was, however, again taken from the retail market in 2005. End 2004, the Group purchased the trademark of fashion designer Karl Lagerfeld and thereby gained worldwide attention again. Hilfiger's initial business partner Murjani was from 2004 to 2011, the licensee of Tommy Hilfiger in India, after the company took over the sales on the subcontinent itself, 2004, the consolidated revenue about $ 1.4 billion in 2005 took over the investment firm Apax Partners, the Tommy Hilfiger Corporation (including the brand Karl Lagerfeld ) to 80% for $ 1.6 billion after the company's revenues had collapsed. The company was privatized and taken from the stock market. Gehring was promoted to Group CEO. Successor of Gehring as CEO of Tommy Hilfiger Europe was the Swiss Daniel Grieder. Apax then tried unsuccessfully to bring Tommy Hilfiger back to the stock market. The upscale Tommy Hilfiger Collection was launched in the U.S. in late 2005 as a self-manufactured in Italy catwalk line. The corporate headquarters was eventually relocated in early 2006 from New York to Amsterdam. In 2007, Hilfiger end with the department store chain Macy's signed an exclusive sales contract for the U.S. market from. The number of own stores around the world has doubled since the early 2000s to nearly 1000 shops. Sales amounted to the equivalent of about € 1.6 billion in fiscal year 2008/ 09; the profit was as in the previous year to € 270 million in 2009, the website hilfigerdenim.com went to the start. In early 2010, created with the help of designer Peter Som Hilfiger collection was presented at the New York Fashion Week and praised by the critics. The $ 300 million net profit in 2009 are due to a large part of the European Division. At the European business revenues in 2008/ 09 generated approximately € 795 million in 2010 made ​​the European business 44 % of global sales. In the same year the company celebrated its 25th anniversary. , Issued on the Holy Fashion Group in Kreuzlingen license for the business line Tommy Hilfiger Tailored Clothing was dissolved at the end of 2011; the clothing line is continued from the spring / summer 2013 at the Tommy Hilfiger Corporation without license itself. [ deprecated] At the same time, the previously self-made Tommy Hilfiger Collection Top line for men and women at the beginning of the season spring / summer 2013 in license to the Italian fashion manufacturers awarded Ittierre.

Phillips Van Heusen

In March 2010 it was announced that the American fashion group Phillips-Van Heusen, which also includes the Calvin Klein brand is part of the company Hilfiger for the equivalent of € 2.2 billion ( nearly $ 3 billion ) by autumn 2010 at the latest to 77% by Apax will take over. Apax will hold in return shares of PVH. For the purchase of the brand Calvin Klein, in which Apax Partners was also involved, PVH had paid in 2003 just under one-seventh, $ 430 million plus fees for royalties, this sum. The Karl Lagerfeld brand was not part of the transaction and remained at Apax Partners. For fiscal year 2010, the Tommy Hilfiger brand contributed $ 1.94 billion to consolidated revenues of PVH.

End of 2010, the Tommy Hilfiger brand was sold in nearly 65 countries and 1040 Hilfiger stores, which are operated about half of the company itself. Of these, there were 426 stores in Europe and 122 in Japan. In the U.S., there were 2010 next to shops -in-shop at the department store chain Macy's about 240 Hilfiger shops, most of which were outlet stores. Have local license agreements for the Hilfiger For Asia and South America. For the 2006 launched upscale catwalk collection Tommy Hilfiger Collection, which had previously been manufactured in-house in Italy, the Company completed the end of 2011 a license agreement with the Italian clothing manufacturer Ittierre on production and international distribution from autumn 2012. In December operational Tommy Hilfiger an appreciation of their own brand image, by a hochgenrige capsule collection was launched together with the cashmere specialists Lanificio Colombo.

Portfolio

The Tommy Hilfiger Corporation is a brand in the upper middle price segment with sales organizations in many countries. The brand portfolio is divided into two major areas (formerly three):

• Tommy Hilfiger ( Fashionable Sportswear for ladies and gentlemen, Business Line Tailored Collection for men and women, high-priced catwalk collection Tommy Hilfiger Collection for men and women, children's clothing, underwear, shoes, accessories, fragrances, home products )
• Hilfiger Denim (jeans and sportswear collection for younger women and men)

The third category - Hilfiger Sport (sportswear for men and women, successor of Hilfiger Athletics ) - since the beginning of the 2010s no longer exists in the portfolio.

Tommy Hilfiger in Germany

The largest European market is Germany. Together with Spain about 40 % of European Hilfiger sales in Germany are generated. In Germany, the company is controlled by the Tommy Hilfiger Germany GmbH based in Dusseldorf, whose Managing Director was to 2006 Dieter Holzer and has since been led by Oliver Timm. The Hilfiger Stores GmbH is responsible among other things for the German website of the company. In early 2010, there were 46 Tommy Hilfiger boutiques in Germany and the company announced further openings. The Germany - turnover was estimated in 2009 to approximately € 190 million. Since summer 2010, Hilfiger is present at the Bread & Butter in Berlin.