News Flash

Tommy Hilfiger's EBITDA grows 23.9% to EUR268 mn

23 Jun '08

4 min read

Total U.S. wholesale net revenue decreased 11.4% following planned declines in discontinued product lines, wholesale customer orders and doors and reduced clearance sales. This was partially offset by increases in sales at better margins to Macy's, where business has performed very well with double digit comp sales year on year. Accordingly, the wholesale gross margin improved by 480 basis points. Licensing net revenue decreased as underperforming licensees were discontinued during the period.

Canada
In Canada, total revenue decreased by 2.1%, which was a mix of solid growth in retail and a decline in wholesale due to a planned reduction of doors. This resulted in an overall increase in gross margin of 250 basis points.

Rest of World/Other
In the Rest of the World all businesses have shown double digit growth, with particularly strong performances in Japan, Korea and Latin and South America, which increased the licensing revenue.

Store Portfolio
There are nearly 800 Tommy Hilfiger stores around the world, of which approximately 50% are operated by the Company with the balance operated by franchisees, distributors or licensees. During the fiscal year ended March 31, 2008, 140 new stores were opened, 42 of which are Company owned.

Current Trading and Outlook
The European forward order book for wholesale continues to show a double digit increase for Fall 2008 whereas retail comparable results on a pan European basis are up mid single digit on a comparative basis versus the previous year for the Spring '08 season to date. Most notably we have seen the brand perform very well in the U.S. in a difficult economic environment.

For the Spring '08 season, comparable sales were up by high single digits for our retail business (period February 1, 2008 through May 31, 2008) whereas our business at Macy's has experienced double digit growth on a comparable basis for the same period.

Tommy Hilfiger Group

More Tommy Hilfiger Corporation News... More Fashion News - Netherlands...