Tommy Hilfiger Continues Growth in Year Ended 31 March 2009(1)
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Mon, 08 Jun 2009 05:00:51 GMT |
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Tommy Hilfiger Group |
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AMSTERDAM, June 8 Tommy-Hilfiger-Group
AMSTERDAM, June 8 /PRNewswire-FirstCall/ --
Financial Highlights
- Total Group net sales increased 21% to EUR1,600 million
- Global retail value of net sales of EUR 3.4 billion
- Sales growth in wholesale 16% and retail 29%, driven by
organic growth, new store openings and the newly acquired Japan and
European Footwear business (12% of total 21% growth).
- Despite pressure on margins in the second half of the year,
EBITDA equal to FY08 at EUR 270 million.
- European sales up 14% to EUR795 million with an EBITDA
margin of 23.2% (FY08: 27.2%)
- North American sales of USD 898 million up 10% with an
EBITDA margin of 10.4% (FY08: 15.2%)
- Cash generated from operations at EUR 267 million (FY08: EUR
228 million)
- Despite significant investments in stores, shop-in-shops and
the acquisition of TH Japan, net debt lower than prior year at EUR 505
million (leverage ratio at 1.9)
Operational Highlights
- 100 new freestanding store openings, taking the global store
portfolio to over 900
- Largest Tommy Hilfiger flagship store in Europe opened in
Cologne, Germany in March 2009
- Business in Japan was swiftly integrated and contributed
significantly to results
- In March 2009, we announced our intent to integrate our US
and Canadian business into Tommy Hilfiger North America
- Strategic alliance with Macy's, established in Fall 2008,
successful and expanding product line to include children's wear
- First global flagship store on Fifth Avenue in New York City
set to open September 2009
Commenting on the results Fred Gehring, Chief Executive Officer, said:
"Like everyone else we have had to address the new economic reality with
an increased focus on inventories, receivables, costs and cash, but we are
more than pleased that in spite of the unprecedented economic circumstances
we were able to continue our growth pattern through the second half of the
year, albeit at a much more controlled level. We believe that this is a true
testament to the incredible global strength of the Tommy Hilfiger brand, our
people and our balanced business model.
We expect the coming year to be challenging but we are focused on the
opportunities and have initiated a significant number of organizational
adjustments so that over the course of the year we will become a more
efficient organization. We will continue to seek new expansion opportunities
in product categories, geographies and store portfolio which allow us to
anticipate continued growth."
Notes to Editors
About the Tommy Hilfiger Group
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. For
additional information about the Tommy Hilfiger Group of Companies, please
visit http://www.tommy.com.
Operational Review
Europe
In Europe total sales increased by 14% to EUR 795 million. The wholesale
operations showed the largest increase as a result of continued growth in all
regions and product groups, as well as the inclusion of European footwear
sales. The retail business showed 1.3% comparable store sales growth and 6%
overall growth compared to the prior year.
Daniel Grieder was appointed Chief Executive Officer of Tommy Hilfiger
Europe B.V. in October 2008. His previous role as Chief Operating Officer and
President of Tommy Hilfiger Europe as well as 11 years experience at Tommy
Hilfiger Group, made him a natural choice to strengthen the European
management team to face the challenges and opportunities ahead.
March 2009 also saw Tommy Hilfiger make an important strategic move and
open its largest European flagship store in Cologne, Germany. The opening has
thus far been very successful, despite difficult market conditions and
further cements Tommy Hilfiger's efforts to further elevate and re-confirm
the brand's positioning in the European market.
North America
Total sales increased 10% to $ 898 million (EUR636 million). In the
wholesale business, the partnership with Macy's again contributed to the
growth compared to last year, resulting in an increased market share compared
to our competitors. In the retail stores the comparable growth amounted to
0.7%, with the second half of the year showing a reversal of the first half
year trend. Total retail sales growth amounted to 10%.
Our successful strategic alliance with Macy's has been expanded to
include the Tommy Hilfiger children's wear range following its success in
Europe.
In March 2009, we announced our intent to integrate our US and Canadian
business into Tommy Hilfiger North America. The integration of the North
American business is progressing according to plan.
Rest of the world
Sales in Japan developed according to plan and are significantly
contributing to the overall growth of the company. In addition, all our
licensing partners in Middle and South America as well as the rest of Asia
showed strong high single digit growth rates.
Store portfolio
A total of 100 new stores were opened in the year, taking the global
store portfolio to over 900 at 31 March 2009. Of these stores, approximately
50% are owned and operated stores. As previously announced, Tommy Hilfiger
Group intends to open its first global flagship store on 5th Avenue, New
York, marking a major step in expanding the brand's retail presence in the
US. The store is due to open in September 2009.
Current Trading and Outlook
The global economic climate remains challenging and we, along with many
international retailers, have experienced difficult market conditions.
Initial figures show that after a challenging start to the Spring season,
April saw stronger trading and in particular the European market showed a
strong recovery around Easter. Tommy Hilfiger has a strong brand, experienced
management team and diversified business model in geographic and distribution
channel terms, and is well positioned to navigate the downturn. Our focus in
the current market is on consolidating our position and building our
performance in our markets whilst maintaining a disciplined approach to our
cost base.
Note on the Accounts
The figures included in this report are prepared under the Company's
accounting standards, which are based on IFRS. The FY09 figures are derived
from our consolidated financial statements for the year ended 31 March 2009.
Warning about Forward Looking Statements
Some statements in this document are forward-looking statements. These
forward-looking statements are based on current expectations, estimates,
forecasts and projections and our beliefs and assumptions about future
events. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that
will occur in the future. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that are outside of our
control and impossible to predict and may cause actual results to differ
materially from any future results expressed or implied.
---------------------------------
(1) On a comparable basis, which is based on an ongoing scope of current
business and constant exchange rates.
SOURCE Tommy Hilfiger Group
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