EX-99 2 nov22pr.txt EXHIBIT 99.1 CONTACT: INVESTOR RELATIONS: PUBLIC RELATIONS: Valerie Martinez Kekst & Company: (212) 549-6780 Ruth Pachman/Wendi Kopsick (212) 521-4891/4867 FOR IMMEDIATE RELEASE TOMMY HILFIGER CORPORATION FILES ANNUAL REPORT ON FORM 10-K FOR FISCAL YEAR ENDED MARCH 31, 2005 HONG KONG, November 18, 2005 - Tommy Hilfiger Corporation (NYSE:TOM) today announced that it has filed its annual report on Form 10-K for the fiscal year ended March 31, 2005 with the Securities and Exchange Commission. The Company also filed its quarterly reports on Form 10-Q for the second quarter ended September 30, 2004 and for the third quarter ended December 31, 2004, along with its amended Form 10-Q/A for the first quarter ended June 30, 2004. As announced on September 30, 2005, the Company concluded that it should restate its financial results for the fiscal years ended March 31, 2004 and prior, as well as for the first quarter ended June 30, 2004. Financial information for such periods contained in the attached tables has been restated to reflect adjustments relating to tax matters, lease accounting, inventory reserves, and other accruals and allowances. The full reports on Forms 10-K and 10-Q are available on www.tommy.com. The Company continues to work towards filing its quarterly results on Form 10-Q for the fiscal quarters ended June 30, 2005 and September 30, 2005 in the near future. 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. Tommy Hilfiger Corporation 9/F., Novel Industrial Building, 850-870 Lai Chi Kok Road, Cheung Sha Wan, Kowloon, Hong Kong. Tel: 2216 0668 Fax: 2371 2928 TOMMY HILFIGER CORPORATION SELECTED FINANCIAL INFORMATION STATEMENT OF OPERATIONS DATA (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) FISCAL YEAR ENDED MARCH 31, 2005 (UNAUDITED) QUARTER ENDED ------------------------------------------------- TOTAL JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 YEAR --------- ------------ ----------- ---------- ----------- (Restated) NET REVENUE $ 328,847 $ 534,171 $ 430,748 $ 487,004 $ 1,780,770 COST OF GOODS SOLD 183,449 278,910 236,875 258,030 957,264 ---------- --------- ---------- --------- ----------- GROSS PROFIT 145,398 255,261 193,873 228,974 823,506 ---------- --------- ---------- --------- ----------- DEPRECIATION AND AMORTIZATION 17,127 22,532 17,456 22,564 79,679 OTHER SG&A EXPENSES 131,832 161,377 155,946 182,472 631,627 ---------- --------- ---------- --------- ----------- TOTAL SG&A EXPENSES 148,959 183,909 173,402 205,036 711,306 ---------- --------- ---------- --------- ----------- INCOME (LOSS) FROM OPERATIONS (3,561) 71,352 20,471 23,938 112,200 INTEREST EXPENSE, NET 6,116 6,254 5,778 4,467 22,615 INCOME (LOSS) BEFORE TAXES (9,677) 65,098 14,693 19,471 89,585 INCOME TAXES (965) 4,920 (5,500) 5,479 3,934 ---------- --------- ---------- --------- ----------- NET INCOME (LOSS) $ (8,712) $ 60,178 $ 20,193 $ 13,992 $ 85,651 ---------- --------- ---------- --------- ----------- ---------- --------- ---------- --------- ----------- INCOME (LOSS) PER SHARE - BASIC $ (0.10) $ 0.66 $ 0.22 $ 0.15 $ 0.93 INCOME (LOSS) PER SHARE - DILUTED $ (0.10) $ 0.65 $ 0.22 $ 0.15 $ 0.93 WEIGHTED AVERAGE SHARES - BASIC 91,317 91,773 91,814 91,827 91,683 WEIGHTED AVERAGE SHARES - DILUTED 91,317 92,450 92,019 92,172 92,265 REVENUE BY SEGMENT U. S. Wholesale $ 163,449 $ 188,965 $ 168,768 $ 158,408 $ 679,590 International Wholesale 47,241 195,380 77,402 205,062 525,085 Retail 103,272 129,828 165,333 102,194 500,627 Licensing 14,885 19,998 19,021 20,246 74,150 Other - - 224 1,094 1,318 ---------- --------- ---------- --------- ----------- TOTAL $ 328,847 $ 534,171 $ 430,748 $ 487,004 $ 1,780,770 ---------- --------- ---------- --------- ----------- ---------- --------- ---------- --------- ----------- Page 2 of 5 TOMMY HILFIGER CORPORATION SELECTED FINANCIAL INFORMATION STATEMENT OF OPERATIONS DATA (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) FISCAL YEAR ENDED MARCH 31, 2004 (UNAUDITED) QUARTER ENDED ------------------------------------------------- TOTAL JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 YEAR --------- ------------ ----------- ---------- ----------- (Restated) (Restated) (Restated) (Restated) (Restated) NET REVENUE $ 367,483 $ 548,222 $ 450,867 $ 510,325 $ 1,876,897 COST OF GOODS SOLD 198,723 290,592 250,363 272,478 1,012,156 ---------- --------- ---------- --------- ----------- GROSS PROFIT 168,760 257,630 200,504 237,847 864,741 ---------- --------- ---------- --------- ----------- DEPRECIATION AND AMORTIZATION 20,022 20,452 22,933 22,897 86,304 OTHER SG&A EXPENSES 117,843 150,354 138,856 173,317 580,370 ---------- --------- ---------- --------- ----------- TOTAL SG&A EXPENSES 137,865 170,806 161,789 196,214 666,674 ---------- --------- ---------- --------- ----------- INCOME FROM OPERATIONS 30,895 86,824 38,715 41,633 198,067 INTEREST EXPENSE, NET 7,542 6,792 7,692 6,299 28,325 INCOME BEFORE TAXES 23,353 80,032 31,023 36,334 169,742 INCOME TAXES 6,911 16,387 7,456 8,168 38,922 ---------- --------- ---------- --------- ----------- NET INCOME $ 16,442 $ 63,645 $ 23,567 $ 27,166 $ 130,820 ---------- --------- ---------- --------- ----------- ---------- --------- ---------- --------- ----------- INCOME PER SHARE - BASIC $ 0.18 $ 0.70 $ 0.26 $ 0.30 $ 1.44 INCOME PER SHARE - DILUTED $ 0.18 $ 0.70 $ 0.26 $ 0.30 $ 1.43 WEIGHTED AVERAGE SHARES - BASIC 90,580 90,610 90,655 90.922 90,692 WEIGHTED AVERAGE SHARES - DILUTED 90,667 91,046 91,556 92,047 91,329 REVENUE BY SEGMENT U.S. Wholesale $ 228,384 $ 257,966 $ 239,040 $ 233,543 $ 958,933 International Wholesale 35,859 159,390 60,924 173,564 429,737 Retail 89,438 115,106 135,903 85,297 425,744 Licensing 13,802 15,760 15,000 17,921 62,483 ---------- --------- ---------- --------- ----------- TOTAL $ 367,483 $ 548,222 $ 450,867 $ 510,325 $ 1,876,897 ---------- --------- ---------- --------- ----------- ---------- --------- ---------- --------- ----------- Page 3 of 5 TOMMY HILFIGER CORPORATION SELECTED FINANCIAL INFORMATION STATEMENT OF OPERATIONS DATA (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) FISCAL YEARS ENDED MARCH 31, 2001, 2002 AND 2003 ------------ ------------ ------------ FY 2001 FY 2002 FY 2003 ------------ ------------ ------------ (RESTATED) (RESTATED) (RESTATED) NET REVENUE $ 1,881,935 $ 1,877,721 $ 1,889,055 COST OF GOODS SOLD 1,116,321 1,073,089 1,058,356 ------------ ------------ ------------ GROSS PROFIT 765,614 804,632 830,699 ------------ ------------ ------------ DEPRECIATION AND AMORTIZATION 109,541 118,129 144,447 OTHER SG&A EXPENSES 460,953 499,978 567,138 GOODWILL IMPAIRMENT - - 150,612 ------------ ------------ ------------ TOTAL SG&A EXPENSES 570,494 618,107 862,197 ------------ ------------ ------------ INCOME (LOSS) FROM OPERATIONS 195,120 186,525 (31,498) INTEREST EXPENSE, NET 23,962 31,203 40,407 ------------ ------------ ------------ INCOME (LOSS) BEFORE TAXES 171,158 155,322 (71,905) ------------ ------------ ------------ INCOME TAXES 48,151 29,771 16,857 ------------ ------------ ------------ NET INCOME (LOSS) (BEFORE ACCOUNTING CHANGE) 123,007 125,551 (88,762) ------------ ------------ ------------ CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE - - (430,026) ------------ ------------ ------------ NET INCOME (LOSS) $ 123,007 $ 125,551 $ (518,788) ------------ ------------ ------------ ------------ ------------ ------------ INCOME (LOSS) PER SHARE - BASIC $ 1.35 $ 1.40 $ (5.74) INCOME (LOSS) PER SHARE - DILUTED $ 1.34 $ 1.40 $ (5.74) WEIGHTED AVERAGE SHARES - BASIC 91,239 89,430 90,387 WEIGHTED AVERAGE SHARES - DILUTED 91,534 90,000 90,387 Page 4 of 5 TOMMY HILFIGER CORPORATION SELECTED FINANCIAL INFORMATION BALANCE SHEET DATA (IN MILLIONS) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, MARCH 31, 2004 2004 2004 2004 2005 ----------- ----------- ------------ ----------- ---------- (RESTATED) (RESTATED) CASH AND CASH EQUIVALENTS 414.5 436,6 364.0 478.8 481.0 SHORT-TERM INVESTMENTS 27.5 31.1 64.9 64.7 40.7 ACCOUNTS RECEIVABLE 193.2 77.9 179.7 78.2 153.9 INVENTORIES 207.3 240.6 256,2 240.3 203.3 WORKING CAPITAL 649.2 651,6 706.3 726.1 661.0 PROPERTY AND EQUIPMENT, NET 241.7 235.0 232.9 244.7 250.1 INTANGIBLE AND OTHER ASSETS 890.3 887.8 899.1 923.3 943.9 TOTAL ASSET5 2,047.9 1,986.1 2,085.3 2,128.0 2,158.1 CURRENT PORTION OF LONG-TERM DEBT 0.7 0.5 0.5 0.4 0.4 SHORT - TERM BORROWINGS - - - - - OTHER CURRENT LIABILITIES 266.0 211.1 246.4 233.5 302.7 LONG TERM DEBT 351.5 351.4 344.1 344,1 344.0 DEFERRED TAX AND OTHER LIABILITIES 222.5 222.8 224.5 226.8 186.7 TOTAL LIABILITIE5 840.7 785.9 815.6 804.9 833.8 SHAREHOLDERS' EQUITY 1,207.2 1,200.2 1,269.8 1,323.1 1,324.3 Page 5 of 5