Luxury apparel company Tommy Hilfiger Corp - which has this week been at the centre of a takeover rumour involving retail giant Wal-Mart Stores - says preliminary 2005 earnings have failed to meet estimates.

The company reported preliminary net income for the year ended 31 March of about $86 million with preliminary pretax income totalling about $89m. Previous estimates had put full-year pretax profit at $92m.

Tommy, which also said results from 2001 to 2004 will need to be adjusted on tax and lease accounting issues, has recently been exploring options including a possible sale of the business.