Macy's Snares Exclusive Deal With Hilfiger - NY Times

In what's being called a 'coup' for Macy's, fashion designer Tommy Hilfiger has agreed to sell his biggest clothing lines exclusively at Macy's, the companies will announce Friday, in a deal the New York Times says could rattle the department store industry. Terms of the deal have Hilfiger removing his signature lines, men's and women’s sportswear, from stores like Dillard’s and Bon-Ton by the fall of 2008. "This is a very big deal for us,” Macy's CEO Terry J. Lundgren told the Times during an interview last night. "Tommy is very significant brand." Hilfiger has lost ground over recent years, going "from preppy to urban and back again," but it remains a prominent force in fashion. During the interview, Lundgren didn't deny it may have other designers in its sites: "Our policy is to listen to any good ideas," he said. The exclusive deal may help him convince other prominent designers to come aboard with similar arrangements. Macy's has struggled to boost sales since merging with May Department Stores in 2005. Shares are down almost 15% YTD and almost 27% over the past year.

Sources: New York Times
Commentary: The Buyers are Back: It's Time to Buy Retail Stocks • Will Macy's Merge Into Sears Holdings?
Stocks to watch: M, DDS, BONT, SKS, JCP, JWN
Earnings call transcript: Macy’s Inc. F2Q07 (Qtr End 8/4/07)

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