Shares in Tommy Hilfiger stock took a nosedive as shareholders and fashionistas alike ponder the future of the designer’s company. Hilfiger has been trying to sell the brand for the past year or so with little success. Many in the fashion industry conjectured that the asking price might have been too high. In comes Wal-Mart, flush with cash, and in desperate need to move the brand upscale.
By taking Wal-Mart upscale through the acquisition, many speculate that the Hilfiger brand may be moving downward. The Hilfiger brand has slumped recently and the acquistion may help Wal-Mart who is in a fight with smaller but resilient Target with their Isaac Mizrahi line.
The odd man out and would be Karl Lagerfeld. Lagerfeld’s trademark was taken over by Hilfiger last year and analysts suspect, would not be part of the deal.