Tommy Hilfiger Inks Exclusive Deal With Macy's For Male, Female Sportswear

September 4, 2008 12:50 p.m. EST

Cincinnati, OH (AHN) - Starting next week Tommy Hilfiger male and female sportswear will be exclusively sold in the U.S. at Macy's.

The sole distributorship arrangement is a business strategy of Macy's to boost sales and differentiate itself from other department stores which had focused on selling basic items and offering discounted goods.

The deal carries more than just a well-known brand. Patricia Edwards, investment manager of Wentworth Hauser and Violich, said with the Tommy Hilfiger line Macy's clients get more than a branded item, but also are assured of high-quality clothes.

Other chains are adopting similar business models. Kohl's will be the exclusive distributor of Vera Wang's apparel and home furnishings under the label Simply Vera. It will also be the sole seller of the Dana Buchman brand designed by Liz Clairborne.

Meanwhile, JC Penney is the only outlet of Polo Ralph Lauren's American Living collection, designer Nicole Miller's clothes and home furnishings by Chris Madden.

Aside from the Tommy Hilfiger line, Macy's carry exclusively Martha Stewart's home furnishings. Macy's chairman and chief executive officer Terry Lundgren said the department store is seeking more exclusive deals with other major apparel designers.

Lundren said the timing of the Hilfiger deal is perfect since the brand has strong sales. "The menswear has always been good, but they really got their act together in design and continuity of the women's apparel... The merchandise looks younger and more modern, but still very Tommy Hilfiger."

Tommy Hilfiger reported in June a 24 percent rise in its profit to $418 million (268 million euro) before interest, tax, depreciation and amortization, on account of strong sales in Europe.