The Luxury Group's strategy is to operate as a diversified operation with multiple brands, products and retail distribution channels.  We expand market share for our key brands - Hickey Freeman, Hart Schaffner Marx, hickey, Bobby Jones and Burberry men's tailored clothing - by marketing to consumers through fine specialty and department stores, our own retail stores and e-commerce.

Hickey Freeman's retail stores in New York outperformed expectations in 2007.  Responding to positive consumer demand, we opened a third Hickey Freeman store in San Francisco and will open our fourth store in Chicago in 2008.

In 2007, we brought Hart Schaffner Marx into the Luxury Group to better reflect the brand's prestigious market position.  We have also started the process of expanding Hart Schaffner Marx to become a lifestyle collection of formal and casual apparel.  We plan to showcase the brand in new marketing venues, including dedicated Hart Schaffner Marx stores and the internet.

The hickey brand features the fine tailoring of the Hickey Freeman brand, combined with the designs that are inspired by a "renegade Americana" spirit.  In 2007, hickey opened its first retail store in the Soho district of New York City, while expanding its distribution to key specialty and department stores and to the hickey e-commerce site.

The Bobby Jones products have expanded in "golf performance" under the Bobby Jones X-H₂O label, and the total women's collection has been expanded to be the most comprehensive line in the luxury golf-country club apparel category.  Bobby Jones has created an alliance with its first major international equipment partner, The Woodford Group, to represent this brand in most of Europe and South Africa.