from the NY TIMES...
the happy couple...
The Marriage of Lagerfeld and Hilfiger
Published: December 14, 2004
They swept into the Industria studio in Lower Manhattan last night, beaming like sweethearts on honeymoon: Karl Lagerfeld wearing his signature shades, Tommy Hilfiger in a pinstriped suit. They were in fact celebrating a marriage of sorts, the surprise nuptials between Mr. Lagerfeld, the designer of Chanel and Fendi, and the Tommy Hilfiger Corporation.
Mr. Hilfiger agreed to purchase collections that Mr. Lagerfeld designs under his own name for men and women, most notably Lagerfeld Gallery, with the objective of building a worldwide brand. It is a chance for Mr. Lagerfeld to build on his growing name recognition; for the Hilfiger Corporation, a $1.88 billion-a-year company that has been looking for a turnaround, it is a chance to diversify beyond middle-of-the-road preppy clothing.
The deal, announced yesterday, came after a trip Mr. Lagerfeld made last week to Tokyo, where he presided at the opening of the largest Chanel store in the world. He was mobbed by customers, some bursting into tears at the sight of him, according to one person there. The deal also follows this Paris-based designer's successful one-time collaboration last month with H&M, the Swedish purveyor of cheap chic.
"Karl is going to bring his genius to this enterprise," an ebullient Mr. Hilfiger said before wading into the crowd that included Anna Wintour and Kal Ruttenstein, the fashion director of Bloomingdale's. "We're going to expand globally and bring Karl on in charge of design, advertising and imaging, and to develop other Lagerfeld collections," Mr. Hilfiger said.
The acquisition, for an undisclosed sum, is a first step in a strategy of building a multibrand portfolio, said David Dyer, the chief executive of Hilfiger.
It comes at a critical juncture for Hilfiger, which is being investigated by the United States Attorney's office in Manhattan. Industry executives said last month that prosecutors are looking into whether the company reported paying inflated commission rates overseas, thereby reducing its tax liability.
The acquisition of the Lagerfeld brand, the first by Hilfiger of a European designer label, followed several years during which Hilfiger scoured Seventh Avenue for partners, among them Calvin Klein and Rocawear. Some retail analysts questioned whether the Lagerfeld business, modest at the moment — it is sold mostly in Europe and Asia, and also at Bloomingdale's — was enough to buoy Hilfiger's bottom line.
But Candace Corlett, a partner in WSL Strategic Retail, a New York consulting firm, said the partnership had loads of potential. "The shopper feels she is getting a little piece of luxury, and the company that buys him is trading on the designer's prestige," she said.
"For luxury designers," she added, "teaming with a big, mass-oriented company is the future."
Mr. Lagerfeld introduced Lagerfeld Gallery, a line of women's ready-to-wear and accessories, in 1999. But the designer, who also finds time for fashion photography and a publishing venture, Edition 7L, said he has had to stint on his own label. "I had no time to develop my business," he said.
He has said in the past that he sees no reason not to link his name with a mass merchant. "For me this is fashion today," he said in an interview in June. Given to portraying himself as a master conservateur of his own life force, he seems ever ready to exploit his vitality.
"I never smoked, never took drugs," Mr. Lagerfeld, 66, said last night. "My energy comes to me naturally."
proving publicity doesnt make much money for Herr Karl..
