During 2018, there was 12 per cent increase in the Tommy Hilfiger business compared to the prior year, driven principally by continued strong performance across all regions and channels. International comparable store sales on the shifted basis described above increased 13 per cent. The Heritage Brands business also rose 1 per cent compared to the prior year. An 8 per cent increase in the Calvin Klein business compared to the prior year, was driven by growth in Europe and Asia, as well as in the North America wholesale business.
"We are very pleased with our fourth quarter and full year 2018 results, which demonstrated the power of our diversified business model. Tommy Hilfiger had an outstanding quarter, with strong growth across all product categories and regions. Calvin Klein delivered a healthy quarter, with particular strength in Europe, solidifying our confidence in the margin opportunity that we previously identified for 2019 and beyond. The outperformance against our guidance in the Tommy Hilfiger and Calvin Klein businesses was partially offset by weaker trends in our Heritage Brands business," Emanuel Chirico, chairman and chief executive officer, said.
"During 2018, we focused on adapting to the changing consumer landscape and geopolitical realities, while taking swift action to address the challenges in our Calvin Klein business. Additionally, we focused on investing in our talent, supply chain, consumer data and insights, and digital capabilities, which we believe positions our businesses for long-term stockholder value creation," Chirico continued.
“We are well positioned going into 2019 and beyond as we execute against our strategic priorities and leverage the incredible talent across our organization. I believe that while we, like many other global consumer companies, will continue to face consumer and geopolitical headwinds, the incredible brand power behind Tommy Hilfiger and Calvin Klein will provide us with significant top and bottom line opportunities over the next several years," Chirico concluded.
Revenue in 2019 is projected to increase approximately 4 per cent (increase approximately 5 per cent on a constant currency basis) as compared to 2018. Revenue for the Tommy Hilfiger business is expected to improve around 6 per cent (increase approximately 8 per cent on a constant currency basis). Revenue for the Calvin Klein business is likely to be up at around 2 per cent (increase approximately 3 per cent on a constant currency basis). Revenue for the Heritage Brands business is projected to increase approximately 3 per cent. (RR)
Fibre2Fashion News Desk – India
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