Tommy Hilfiger Corporation, amidst a facing US investigation, reported disappointing sales and declining operating margins. The company announced that it would delay the release of its earnings for the quarter because of the investigation, which could affect the company's tax liability.

The president and chief executive, David F. Dyer, said sales for the quarter were below expectations. Pretax profit fell 14 percent from the quarter a year ago, and the company lowered its outlook for the year ending March 31.