AMSTERDAM, Netherlands (June 24, 2008)—For the financial year ended March 31, Tommy Hilfiger reported growth across the board. Total group sales rose 14.4 percent hitting 1.3 billion euros, while the global retail value of net sales was 3 billion euros. European sales jumped 22.8 percent to 707 million euros and North American sales rose 2.5 percent to $836 million.

Honey by Tommy Hilfiger

Throughout Europe, both the wholesale and retail businesses continued to show strong double-digit growth with further improved gross margins. Wholesale revenue increased by 22.4 percent due to a strong performance from all divisions and countries, as well as the September acquisition of the group’s former footwear licensee, Tommy Hilfiger Footwear, which accounted for 8.2 percentage points of the growth. Retail revenue increased 26.4 percent, mainly due to new and refurbished stores.

In the U.S., the company’s initiatives to reposition the brand by trading up were successful After several years of decline, the U.S. business has started to contribute to the overall growth of the group. Retail net revenue for the U.S. segment was driven by comparable growth of 6.7 percent for the year. In addition, the group opened 13 new stores, with specialty stores showing significantly higher sales and gross margins compared to 2007. However, total U.S. wholesale net revenue dropped 11.4 percent 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 comparable sales year-on-year. Licensing net revenue decreased as underperforming licensees were discontinued during the period.

In Canada, total revenue decreased 2.1 percent, which was a mix of solid growth in retail and a decline in wholesale due to a planned reduction of doors.

In the rest of the world, all businesses experienced double-digit growth, with particularly strong performances in Japan, Korea and Latin and South America, which increased the licensing revenue.

During the financial year, Tommy Hilfiger opened 140 new stores, making the grand total 796. The company entered into a strategic alliance with Macy’s, which will begin this fall, and acquired former licensees Tommy Hilfiger Japan and Tommy Hilfiger Europe Footwear.

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