• H1 sales up 3.5% to EUR772m
  • European retail sales surge 24.4%
  • Highlights reduction in wholesale customers

 

Fashion label Tommy Hilfiger delivered a 3.5% increase in first half sales, boosted by a surge in retail revenues from its European business.

The Netherlands-based company said sales in the six months to 30 September had moved up to EUR772m (US$1.14bn).

It highlighted a 24.4% hike in European retail sales, with like-for-like sales up 2.5%.

However, the company said total European sales had fallen 6.4% thanks to more cautious buying from wholesale customers, plus a decision to reduce its wholesale customer base.

In North America, retail comparable store sales were down 3.3%, but this was more than offset by a rise in total retail sales of 11.6%, bringing total North American sales up 13.1% to EUR324m.

Wholesale revenues were buoyed by the addition of handbags and footwear, and new product groups at department store Macy's, Tommy Hilfiger said. Sales in Japan rose 20.1%, but retail comps fell 1.8%, reflecting the challenging economic climate.

However, sales at licensing partners in Central and South America, plus the rest of Asia, were up 9.8%.

Tommy Hilfiger CEO Fred Gehring said the figures demonstrated the strength of the brand, despite the economic difficulties, and the balance and diversity of the company's business model.

"During the period, we delivered upon our strategy to reduce our European customer base by 15%, in order to strengthen and consolidate our wholesale portfolio, which makes these results even more compelling," he added.