Fashion designer Tommy Hilfiger Corp swung to a first-quarter loss of $7.6 million, compared to net income of $9.8 million in the same period last year.

Revenue in its wholesale segment decreased 20.3 per cent, offsetting gains in its retail business.

For the three months ending 31 March 2005, net revenue was $328.6 million compared to $367.2 million in the first quarter of fiscal 2004.

Tommy Hilfiger Europe achieved a 45.1 per cent increase in first-quarter revenue to $53.4 million versus $36.8 million a year-ago. This increase included around $3 million from the stronger euro.

In the company's Wholesale segment, first quarter revenue declined 20.3 per cent year-on-year to $210.5 million from $264.0 million. The biggest drop was reported by the children's component, which declined by 46.9 per cent from last year to $27.7 million.

Retail business revenues increased 15.5 per cent to $103.3 million from $89.4 million in the prior year's quarter, due to store openings and expansions.

Same store sales in the US, the company's largest retail division, declined by a low single digit per cent for the quarter.

"While we reported a loss for the quarter, our results were in line with our expectations and, in fact, due to the timing of shipments, slightly better than we previously forecast," Hilfiger president and chief executive David Dyer said in a statement.

The company said it expects full year fiscal 2005 revenue to be lower than fiscal 2004 in the high single digit percentage range.