Posted by: David Kiley on September 27, 2005
If Walmart is really courting the financially ailing Tommy Hilfiger, as its being reported, it could be a win-win for both brands, though a hard pill for Tommy to swallow.
Tommy Hilfiger’s brands isn’t exactly burning up the fashion scene. But Walmart could make its financial troubles go away with a cash infusion, and then make an investment in TH as its house brand. It’s not so far gone that some good management and money couldn’t make TH a solid mid-level brand at Walmart.
For Walmart, it gives the giant retailer a bit of the designer cachet it covets in its smaller rival, Tarjay, which , of course, has designers like Mossimo Giannulli and Isaac Mizrahi.
Walmart is trying to make the kind of moves that Wall Street notices. It’s revenues and earnings per share have climbed under H.Lee Scott Jr., but its share price has fallen as the company operates under a nagging overhang of political/social discomfort over its manufacturing, sourcing and expansion practices. Another brand that could be for sale that would be a good fit for Walmart? How about urbanwear brand Roc-A-Wear?