Mr. Horowitz will also continue in his role as Chief Executive Officer and President.

"Since becoming Chairman last October, I've been working with the Board to analyze a variety of long-term strategic and management issues," Tommy Hilfiger said.

"As part of that process, we considered the most effective way to continue the successful long-term partnership between Joel Horowitz and myself. I came to realize the Company would be better served by each of us focusing on the work that best plays to our strengths and passions."

"For me, that means concentrating on the creative aspects of an apparel business -- design and marketing. Similarly, I came to the conclusion that the right person to concentrate on governance and strategic planning issues was Joel -- and if others agreed with me, we should have him assume the Chairman role as soon as possible and I would return to my previous positions. The Board agreed with my assessment, and that led to today's announcement."

Mr. Horowitz said, "I have always said I wanted to continue a strong involvement with this Company, and I am delighted to have the opportunity to do so as Chairman. At the same time, we are actively continuing our search for my successor as Chief Executive Officer."

Mr. Horowitz also observed that the apparel industry is facing many challenges and emphasized that the company has been building blocks to move ahead with a strong global brand, an excellent cash position, and numerous opportunities to extend our reach worldwide.

He also emphasized three priorities going forward, all of which have to do with rebuilding long-term shareholder value - intense focus on improving operations, continue using the company cash to pay down debt, and to continue to seek opportunities to further diversify revenue and earnings base.