Tommy Hilfiger and Thierry Henry in fashion collaboration
Tommy Hilfiger has signed Arsenal captain Thierry Henry as an international brand ambassador. The fashionable Henry will feature in ad campaigns for spring and fall 2007 formalwear and underwear. "It's always been tough for us to find the right guy, someone who personifies the nature of what we stand for," Hilfiger said. The collection will feature separates inspired by Henry's lifestyle as interpreted by Hilfiger. Key pieces will include shirts, trousers, jackets, ties, jeans and sweaters — and are expected to be called TH2 or THTH.
"I'd like to take his look and re-create it for the public," the designer said. The collection will hit the shop floor for fall 2007, and all profits will go to Henry's new charity, The One For All Foundation, aimed at combating racism around the world.
www.tommyhilfiger.com
8 December 2006
Tommy Hilfiger merger finalised
Tommy Hilfiger Corporation announced yesterday that its shareholders voted to approve the merger agreement with Elmira 2 B.V. and Elmira (BVI) Unlimited, which are subsidiaries of funds advised by Apax Partners, at a special meeting of shareholders held today.
The merger is expected to close May 10, 2006 , subject to the satisfaction of other previously disclosed closing conditions. In accordance with the terms of the merger agreement, at the closing, each ordinary share of Tommy Hilfiger Corporation will be converted into the right to receive $16.80 in cash, without interest.
Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear. The Company's brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings. The Company's products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Company's own network of outlet and specialty stores in the United States, Canada and Europe.
Apax Partners is one of the world's leading private equity investment groups, operating across the United States , Europe , Israel and Asia . Apax Partners has raised or advised approximately US $20 billion around the world. With more than 30 years of direct investing experience, Funds advised by Apax Partners provide long-term equity financing to build and strengthen world-class companies.
Hilfiger wholesale decline causes profit drop
Tommy Hilfiger Corp. has reported a 23.3 percent plunge in third quarter profits as its wholesale business suffered a decline due to reduced department store orders. Furthermore it announced that its sale to Apax Partners is on track, despite the objection of major shareholder Sowood Capital. Sowood, which holds almost 5.8 million of the Hong Kong-based 93.9 million shares outstanding, was not happy with the purchase price.
During a conference call Hilfiger chief executive David Dyer said that the retailer's directors “unanimously reaffirmed their determination that the Apax transaction is fair and in the best interest of the company and its shareholders.” He added that its banker, JP Morgan Securities, had not been approached a competing bidder since the deal was announced in December last year.
Continuing on the subject, Dyer did say that Tommy Hilfiger himself and some members of European management have "nonexclusive agreements with Apax, which means they would be free to negotiate with competing bidders if one were to emerge." He also said that Hilfiger could use his 4.3 percent stake to vote for a better offer, should it come along. However, doing this would cost Hilfiger a $50 million break-up fee, payable to Apax.
Income during the quarter ended 31 December dropped to $15.5 million (£8.87 million), from $20.2 million during the same period the year before. Revenue for the quarter fell 7.9 percent to $396.6 million. Hilfiger said results were partially due to a 36.3 percent fall in US wholesale volume to $107.5 million due to reduced department store orders. The company's exit from its young men's jeans wholesale business last year accounted for $13.5 million of that reduction.
Dyer said that the retailer had witnessed some retail sales improvements from its US wholesale business, especially in the men's wear business, but pointed out that the company still needed to work on the women's wear business. Dyer, who is leaving the firm and will be replaced by Fred Gehring, chief executive of Tommy Hilfiger Europe, said that the “current negative trends (will) carry forward into the fiscal year 2007”.
Meanwhile, international wholesale sales climbed 4.1 percent to $80.6 million, from $77.4 million. Revenue from retail activities rose 12.4 percent to $185.8 million, and same-store sales at US stores rose slightly. Licensing revenues rose 8.4 percent to $20.6 million. Income for the nine month period fell 5.6 percent to $67.7 million, while revenue for the period also dropped 5.8 percent to $1.22 billion.
www.hilfiger.com
10 February 2006
Hilfiger opens four Indian outlets
Fashion retailer Tommy Hilfiger is planning to open four new outlets in India, in the cities Ahmedabad, Bangalore, Delhi and Lucknow. The stores should become operational within the next four months. According to Summet Yadav, Business Head, all nine outlets in India are franchised. Tommy Hilfiger is promoted in India by Arvind Murjani brands, which is a joint venture between the Murjani group and the Arvind brand.
www.hilfiger.com
30 January 2006