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Tommy Hilfiger posts 21% sales growth

Tommy Hilfiger saw sales rise 21% to €1.6 billion (£1.4bn) in the year to March 31, but warned that sales had slowed dramatically since October last year.

EBITDA was flat on the previous year at €270 million (£236.1m), partly because of increased costs which hit margins.

Tommy Hilfiger said that sales growth had run at 30% in the first half of the year but that this had fallen back to 21% over the full year, after the full financial crisis took hold in the second half of the year.

Sales growth in the wholesale business was 16%. Within retail growth was 29%.

Just over half of the total sales growth was also attributable to Tommy Hilfiger’s purchase of its Japanese operation and its European footwear business.

“…we are more than pleased that in spire of the unprecedented economic circumstances we were able to continue our growth pattern…We believe that this is a true testament to the incredible global strength of the Tommy Hilfiger brand…”

Fred Gehring, chief executive, Tommy Hilfiger

European sales rose 14% to €795m (£695.5m). EBITDA margin was 23.2% versus 27.2% last year.

In an interview with The Times newspaper, Tommy Hilfiger chief executive Fred Gehring said: “It’s still been pretty good growth but I must be clear - we are saying that, from October, it slowed. The last six months have been very challenging for everyone.”

He added that UK business had been “quite strong” and that the premium brand had recorded double-digit growth in its UK retail stores. He said: “That has been influenced by the weakness of sterling and that has been a benefit for retail, especially in London.”

In a statement with the results Gehring said: “We expect the coming year to be challenging but we are focused on the opportunities and have initiated a significant number of organisational adjustments so that over the course of the year we will become a more efficient organisation. We will continue to seek new expansion opportunities in product categories, geographies and store portfolio which allow us to anticipate continued growth.”

Tommy Hilfiger opened 100 stores over the period, taking its portfolio to more than 900 shops worldwide.

 

Readers' comments (1)

  • These are impressive figures from Tommy Hilfiger even though they say sales have slowed ore recently. I thought the spring 09 collection was good and I think this story proves that if you have a strong brand name you will do well in a weak market.

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