Tommy Hilfiger to Bring Men's and Women's Footwear License In-House

NEW YORK and LEXINGTON, Mass., March 5 /PRNewswire-FirstCall/ -- Tommy Hilfiger Group and the Stride Rite unit of Collective Brands, Inc. NYSE: PSS today announced that they have reached a mutual agreement under which Tommy Hilfiger will bring its men's and women's footwear business in-house effective January 1, 2009. Stride Rite will continue to remain a licensee for the Tommy Hilfiger Kids footwear line through December 31, 2009.

Tommy Hilfiger Group and Stride Rite have had a relationship for more than 10 years, with Stride Rite serving as the exclusive licensee of the Tommy Hilfiger footwear brand in the United States. The existing license was set to expire December 31, 2008. Collective Brands expects no material financial impact in fiscal year 2008 as a result of this move.

"We have always had a very successful relationship with Stride Rite and appreciate its valuable contributions to the brand over the past decade. However, since the Tommy Hilfiger Group acquired Tommy Hilfiger Footwear GmbH in 2007, the company that operates the footwear business internationally under a separate license agreement, we have experienced the benefits of having this type of dedicated expertise in-house," said Fred Gehring, CEO of Tommy Hilfiger Group. "Therefore, we firmly believe that bringing the U.S. footwear business in-house as well will allow us to benefit from global economies of scale and further brand alignment."

As part of the transition plan, Stride Rite will deliver the full Tommy Hilfiger Footwear collection for 2008. Several Stride Rite associates that have been directly involved with the Tommy Hilfiger business will join Tommy Hilfiger U.S.A., Inc.'s newly created Tommy Hilfiger Footwear division, and report to Anne Marino, President of Tommy Hilfiger Licensing.

"The Tommy Hilfiger team has been a great business partner, and we look forward to continuing our relationship with the Tommy Hilfiger Kids business," said Gregg Ribatt, chief executive officer of Stride Rite. "This transition plan is very thorough and ensures the utmost commitment to the brand and to our customers. Furthermore, for Stride Rite, it allows our teams to focus on the key opportunities before us with our owned brands such as Sperry Top-Sider, Saucony and Keds, as well as our Stride Rite Children's Group business."

The Tommy Hilfiger Footwear collections will continue to be distributed through high-quality distribution networks, as well as in Tommy Hilfiger's own specialty stores in the United States.

About Tommy Hilfiger Group

Tommy Hilfiger is a leading premium lifestyle brand and one of the largest designer apparel brands globally. Tommy Hilfiger Group designs and markets men's and women's casual wear, sportswear, jeans, children's wear and footwear. The Group's products can be found in its network of dedicated retail stores in Europe, the United States and Canada, as well as in leading specialty and department stores throughout Europe and North America. Through over 40 licensees, Tommy Hilfiger-branded products, including a broad array of related apparel, accessories, fragrance and home furnishings, are distributed worldwide, including in Mexico, Central and South America, Japan, Australia India, China and elsewhere throughout Asia.

About Collective Brands, Inc.

Stride Rite, a unit of Collective Brands, Inc., is focused on lifestyle and athletic branded footwear and high-quality children's footwear sold primarily through wholesaling, with its brands including Stride Rite(R), Keds(R), Sperry Top-Sider(R), Robeez(R), and Saucony(R), among others. The Stride Rite Children's Group markets the leading brand of premium children's footwear in the United States under such brands as Stride Rite(R), Saucony(R) Kids, Born(R) Kids, Sperry Top-Sider(R) Kids, and Tommy Hilfiger(R) Kids, among others. For over 85 years, the company has designed and engineered footwear specifically to meet the needs of growing children.

Collective Brands, Inc. NYSE: PSS is a leader in bringing compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. The company operates three strategic units covering a powerful brand portfolio, as well as multiple price points and selling channels including retail, wholesale, ecommerce and licensing. Collective Brands, Inc. includes Payless ShoeSource, focused on democratizing fashion and design in footwear and accessories through its more than 4,500-store retail chain, with its brands American Eagle(R), Airwalk(R), Dexter(R), Champion(R) and designer collections Abaete for Payless, Lela Rose for Payless and alice + olivia for Payless, among others; Stride Rite, focused on lifestyle and athletic branded footwear and high-quality children's footwear sold primarily through wholesaling, with its brands including Stride Rite(R), Keds(R), Sperry Top-Sider(R), Robeez(R), and Saucony(R), among others; and Collective Licensing International, the brand development, management and global licensing unit, with such youth lifestyle brands as Airwalk(R), Vision Street Wear(R), Lamar(R), Sims(R), LTD(R), genetic(R), Dukes(R), Rage(R), Ultra-Wheels(R), and Skate Attack(R). Information about, and links for shopping on, each of the Collective Brand's units can be found at http://www.collectivebrands.com.