 Tommy Hilfiger Group announces that for the six month period to 30 September 2009 total global sales increased by 3.5% to EUR772 million.
CEO Fred Gehring said: "We are very pleased with this set of mid-year results. They demonstrate the strength of the Tommy Hilfiger brand around the world in a still very challenging economic environment and illustrate the benefits of our balanced and diversified business model, both regionally as well as between retail and wholesale. During the period, we delivered upon our strategy to reduce our European customer base by 15%, in order to strengthen and consolidate our wholesale portfolio, which makes these results even more compelling."
Executive Summary
Europe
In Europe, an increase in retail sales of 24.4% was underpinned by a positive like for like growth of 2.5%. Overall, European sales decreased 6.4% due to a slowdown in wholesale volumes as a result of more cautious buying from wholesale customers, and the Company's strategic decision to reduce the wholesale customer base, giving us a stronger customer portfolio going forward.
North America
In North America, a negative comparable growth of 3.3% in the retail stores was more than offset by higher overall sales, resulting in a total retail sales growth of 11.6% (3.7% at comparable rates). Total North American sales increased 13.1% to EUR324 million ($447million) or 4.9% at comparable exchange rates. In the wholesale business, the addition of handbags and footwear as well as the introduction of new product groups at Macy's resulted in a growth of 23.3% (13.7% at comparable exchange rates). The highlight of the period was the opening of our global flagship store on Fifth Avenue in New York City, which has performed well so far.
Rest of the world
Sales in Japan were up 20.1%, but down 1.8% at comparable rates reflecting the challenging economic climate in Japan. Sales at our licensing partners in Middle and South America as well as the rest of Asia were up 9.8% (flat at comparable rates).
Store portfolio
A total of 40 stores was added in the six months to 30 September 2009, taking the global store portfolio close to 950 stores at 30 September 2009. Of these stores, approximately 50% are wholly owned and operated stores.
In all regions, initiatives to make the supply chain more efficient as well as cost saving programs were implemented in order to maintain a strong balance sheet. These initiatives will be continued throughout the remainder of the year and will also result in a decrease in trade receivables and inventory.
With a premium lifestyle brand portfolio that includes Tommy Hilfiger and Hilfiger Denim, The Tommy Hilfiger Group of Companies is one of the world's most recognized designer apparel groups. The Group's focus is designing and marketing high-quality menswear, womenswear, children's apparel and denim collections. Through select licensees, the Group offers complementary lifestyle products such as accessories, fragrances and home furnishings. Tommy Hilfiger Group merchandise is available to consumers worldwide through an extensive network of dedicated retail stores, leading specialty and department stores and other carefully controlled distribution channels. |