NEW YORK: Tommy Hilfiger Corp. (TOM) has recorded a first-quarter loss of $7.6 million, or 8 cents a share. The company had expected its first-quarter loss to range from 10 cents to 13 cents a share.
Hilfiger President and Chief Executive David Dyer stated that the company had speculated the loss before hand and still the loss is slightly better than the forecast.
Hilfiger's first-quarter revenue decreased to $328.6 million from $367.2 million a year ago.
The company continues to expects its fiscal 2005 income before items to decrease in the mid-teen percentage range from the $1.50 a share earned last year. Wall Street expects Hilfiger to earn $1.27 a share for the year ending in March.
Hilfiger also backed its fiscal 2005 revenue guidance calling for a high single digit percentage decrease from the $1.88 billion generated last year. Analysts expect Hilfiger to generate revenue of $1.73 billion.
Tommy Hilfiger expects capital expenditures of about $70 million for fiscal 2005. The programs include expansion and maintenance of in-store shops and fixtured areas.
Hilfiger said it seeks to consolidate and enhance some facilities. The efforts could result in non-recurring charges of about 3 cents a share for the rest of the year. These deals could require additional capital expenditures of $10 million to $15 million for the year, the company added.
Source: Bharattextile.com News Service