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Tommy Hilfiger predicts financial update for March ended 31, 06

11 Aug '05

4 min read

They are also pleased with the performance of US Company stores, where key item programs and improved inventory management resulted in positive comparable sales and solid margin gains for the third consecutive quarter.

Overall, business in the U.S. wholesale segment remains challenged and they continue to strive for improved profitability through product initiatives and cost reductions.

US wholesale revenue for the quarter was approximately $115 million for the quarter ended June 30, 2005 compared to approximately $163 million for the quarter ended June 30, 2004. Approximately $12 million of this reduction is attributed to the Company's exit of the Young Men's Jeans and H Hilfiger wholesale businesses during fiscal 2005. Additionally, lower volume in menswear, womenswear and childrenswear resulted from decreased orders from the Company's major customers and a reduction in the number of department store doors through which the Company's products are distributed.

International wholesale revenue, consisting of the Company's European and Canadian wholesale businesses, for the first quarter of fiscal 2006 totaled approximately $64 million versus approximately $47 million a year earlier. The increase was driven by higher volume and higher exchange rates used to translate the Euro and Canadian dollar. Differences in exchange rates accounted for approximately $3 million of the increase.

Retail revenue for the first quarter of fiscal 2006 was approximately $122 million compared to approximately $103 million a year earlier. The Company's store count increased by 30 since July 1, 2004, including 12 stores opened in the first quarter of fiscal 2006. Comparable sales at U.S. Company stores, the largest retail division, increased by low single digit percentage for the quarter. As of June 30, 2005, the Company's worldwide store count was 211, including 165 Company stores and 46 specialty stores, compared to 181 stores a year earlier, consisting of 146 Company stores and 35 specialty stores.

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