Macy’s, Inc. (NYSE:M) and Tommy Hilfiger U.S.A., Inc. today announced that they have signed a strategic alliance agreement under which Macy’s will be the exclusive department store retailer of Tommy Hilfiger men’s and women’s sportswear in the United States, beginning in fall 2008.

Under this agreement, Macy’s will expand Hilfiger merchandise assortments in every Macy’s division and on macys.com, increase and enhance location of Hilfiger shops in high-volume Macy’s stores, renovate and upgrade existing Tommy Hilfiger shops and feature Hilfiger collections in Macy’s marketing campaigns. The two companies will work closely together on new ventures and brand extensions.

Tommy Hilfiger will continue to operate its own freestanding stores and sell online at tommy.com. All product distributed through Tommy Hilfiger’s various licensees will continue to be sold on a nonexclusive basis through Macy’s, as well as other accounts.

“Tommy Hilfiger already is one of the most successful vendor resources at Macy’s and a brand that our customers expect to find in our stores. Both men’s and women’s merchandise have been performing well for us,” said Terry J. Lundgren, Macy’s chairman, president and chief executive officer. “Through this exclusivity agreement, we will bring our customers an increasing level of compelling and distinctive fashions that are consistent with their aspirations and lifestyles. Strong and well-established brands like Tommy Hilfiger set Macy’s apart. So offering this brand on a much more exclusive basis is another powerful reason for customers to choose to shop at Macy’s.”

“We believe a strategic alliance between Tommy Hilfiger, a brand with one of the highest levels of nationwide awareness in our industry, and Macy’s, the quintessential nationwide retailer, is extremely powerful and a win-win for both of our companies,” said Fred Gehring, chief executive officer of Tommy Hilfiger Group. “Total focus and dedication of our wholesale team towards one nationwide account will prove extremely effective and rewarding.

At the same time we look forward to benefiting from the elevated and expanded presence of our brand within the Macy’s offering. This new direction in our wholesale strategy will be complemented by a simultaneous expansion of freestanding Tommy Hilfiger retail stores in key locations across the country. Together we believe that this will lead to a very attractive position for Tommy Hilfiger in the US market.”

“Throughout the twenty-two years we have been in business, Macy’s has always been our most important account and an excellent partner,” said Principal Designer Tommy Hilfiger. “The recent consolidation of department stores in our market place has made a strategic alliance between our two companies all the more compelling and logical. I am extremely pleased we have partnered to build something great together and share Terry’s vision. I look forward to the future with great anticipation.”

About Tommy Hilfiger

Tommy Hilfiger Group designs and markets men's and women's sportswear, jeanswear, and childrenswear. The company also offers an array of related apparel, accessories, footwear, fragrance, and home furnishings. The company's products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as within Tommy Hilfiger’s own stores, in the United States, Canada and Europe.

About Macy’s, Inc.

Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of $27 billion. The company operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail. Prior to June 1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

You can learn more about Macy's at their website or you can read a Macy's Profile at Apparel Search.

To learn more about Tommy Hilfiger, you can read an article we wrote back in 2001 which was called Is Tommy Hilfiger Stupid?