Slowing domestic sales of its men's and children's wear collections have depressed profits, prompting the retailer to shut 37 of its 44 stores in the US and lay off about 500 employees in a cost-cutting drive. The change in strategy will see the New York-based retailer turn its focus to Asian and European markets.
Tommy Hilfiger will make its first foray into the Korean retail market through local trading company SK Global. The company will also launch the brand in Singapore and Malaysia this spring as part of its global expansion plans.
Tommy Hilfiger sportswear, jeans wear and children's wear collections will be made available in the Korean market through an exclusive multi-year agreement.
Lynn Shanahan, president of licensing at Tommy Hilfiger, added: "This new marketing and distribution agreement is part of our commitment to further develop the global market strategy for the Tommy Hilfiger brand."
Shanahan said the men's sports wear collection will be the first to debut in South Korean department store concessions and in 'free-standing' shops in the autumn this year, and will be followed by the other collections.
Man Gyun Kim, executive director of SK Fashion, said the launch would capitalise on increasing demand for "quality sports wear" in South Korea.
SK Global has hired Bongwoon Kom and Euhee Lee, two leading fashion industry executives, to oversee the brand's launch and expansion in Korea.
In Asia, Tommy Hilfiger also has retail stores in Japan and Hong Kong.
Although Tommy Hilfiger, along with many high-profile names in the fashion and retail industry, have been hit hard by the uncertain economic outlook and are struggling to match the buoyant sales figures of the 1990s, the company has managed to insulate itself from the worst by posting stronger sales in Europe.