UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1997
Commission File Number 1-11226
TOMMY HILFIGER CORPORATION
(Exact name of registrant as specified in its charter)
British Virgin Islands Not Applicable
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
6/F, Precious Industrial Centre, 18 Cheung Yue Street,
Cheung Sha Wan, Kowloon, Hong Kong
(Address of principal executive offices)
852-2745-7798
(Registrant's telephone number,
including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
Ordinary Shares, $0.01 par value per share, outstanding as of
September 30, 1997: 37,361,994<PAGE>
TOMMY HILFIGER CORPORATION
INDEX TO FORM 10-Q
September 30, 1997
PART I - FINANCIAL INFORMATION Page
Item 1 Financial Statements
Condensed Consolidated Balance Sheets as of
September 30, 1997 and March 31, 1997................. 3
Condensed Consolidated Statements of Operations
for the six months ended September 30, 1997
and 1996 and the three months ended September
30, 1997 and 1996..................................... 4
Condensed Consolidated Statements of Cash Flows
for the six months ended September 30, 1997
and 1996.............................................. 5
Condensed Consolidated Statement of Changes in
Shareholders' Equity for the six months
ended September 30, 1997 and the year ended
March 31, 1997........................................ 6
Notes to Condensed Consolidated Financial Statements.. 7
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations................... 8
PART II - OTHER INFORMATION
Item 4 Submission of Matters to a Vote Of Security Holders... 12
Item 6 Exhibits and Reports on Form 8-K...................... 12
Signatures...................................................... 13
2<PAGE>
PART I
ITEM 1 - FINANCIAL STATEMENTS
TOMMY HILFIGER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited) As of As of
September 30, March 31,
1997 1997
---- ----
ASSETS
Current assets
Cash and cash equivalents.............. $80,729 $109,908
Accounts receivable.................... 104,713 79,984
Inventories............................ 182,337 123,847
Investments............................ 20,000 --
Other current assets................... 21,438 18,614
------- --------
Total current assets................. 409,217 332,353
Property and equipment, at cost,
less accumulated depreciation
and amortization....................... 138,784 121,540
Other assets............................. 7,861 9,192
------- --------
Total Assets........................ $555,862 $463,085
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings.................. $33,084 $5,980
Accounts payable....................... 12,265 5,996
Accrued expenses and
other current liabilities............ 57,597 49,710
------- ------
Total current liabilities................ 102,946 61,686
Other liabilities........................ 2,439 2,425
Long-term debt........................... -- 1,510
Shareholders' equity
Preference Shares, $0.01 par value-shares
authorized 5,000,000; none issued.... -- --
Ordinary Shares, $0.01 par value-shares
authorized 50,000,000;
issued and outstanding 37,361,994
and 37,249,529, respectively......... 374 372
Capital in excess of par value......... 168,716 165,032
Retained earnings...................... 281,416 232,015
Cumulative translation adjustment...... (29) 45
-------- --------
Total shareholders' equity........... 450,477 397,464
-------- --------
Commitments and contingencies
Total Liabilities and Shareholders'
Equity............................. $555,862 $463,085
======== ========
See Accompanying Notes to Condensed Consolidated Financial
Statements
3<PAGE>
<TABLE>
TOMMY HILFIGER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
<CAPTION>
(Unaudited) FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ --------------------------
1997 1996 1997 1996
<C> <C> <C> <C>
Net revenue.................... $398,281 $303,036 $224,546 $178,907
Cost of goods sold............. 206,870 157,986 114,838 91,976
-------- -------- -------- --------
Gross profit................... 191,411 145,050 109,708 86,931
Selling, general and
administrative
expenses..................... 119,557 92,184 62,913 51,796
-------- -------- -------- --------
Income from operations......... 71,854 52,866 46,795 35,135
Interest expense .............. 694 544 515 341
Investment income ............. 3,575 2,984 1,826 1,396
------- -------- -------- --------
Income before income taxes.... 74,735 55,306 48,106 36,190
Provision for income taxes .... 25,334 18,638 16,212 12,100
------- ------- ------- -------
Net income..................... $49,401 $36,668 $31,894 $24,090
======= ======= ======= =======
Earnings per share:
Earnings per share and share
equivalents.................. $ 1.30 $ .97 $ .84 $ .63
======== ======== ======== ========
Weighted average shares
and share equivalents
outstanding.................. 37,928 37,742 37,976 37,984
======== ======== ======== ========
See Accompanying Notes to Condensed Consolidated Financial Statements
</TABLE>
4<PAGE>
TOMMY HILFIGER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(Unaudited) For the Six Months
Ended September 30,
------------------
1997 1996
---- ----
Cash flows from operating activities
Net income................................... $49,401 $36,668
Adjustments to reconcile net
income to net cash from
operating activities
Depreciation and amortization............ 14,496 9,189
Changes in operating assets and
liabilities
(Increase) decrease in assets
Accounts receivable.................. (24,729) (11,523)
Inventories.......................... (58,490) (21,860)
Other assets......................... (1,780) 437
Increase (decrease) in liabilities
Accounts payable..................... 6,269 (2,410)
Accrued expenses and other
liabilities........................ 7,901 8,494
------ -----
Net cash (used in) provided by
operating activities................... (6,932) 18,995
------ -----
Cash flows from investing activities
Purchases of property and equipment.......... (31,453) (49,181)
Purchases of investments..................... (20,000) --
------ ------
Net cash used in investing activities.... (51,453) (49,181)
------- -------
Cash flows from financing activities
Proceeds from the exercise of employee
stock options.............................. 2,817 1,786
Tax benefit from exercise of stock options... 869 2,897
Short-term bank borrowings................... 27,104 (4,776)
Payments on long-term debt................... (1,510) (138)
Other........................................ (74) 7
Net cash provided by (used in)
financing activities....................... 29,206 (224)
------ -----
Net decrease in cash........................... (29,179) (30,410)
Cash and cash equivalents,
beginning of period.......................... 109,908 127,743
------- -------
Cash and cash equivalents, end of period....... $80,729 $97,333
======= =======
See Accompanying Notes to Condensed Consolidated Financial Statements
5<PAGE>
<TABLE>
TOMMY HILFIGER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(IN THOUSANDS)
<CAPTION>
CAPITAL IN
EXCESS CUMULATIVE TOTAL
ORDINARY OF PAR RETAINED TRANSLATION SHAREHOLDERS'
SHARES VALUE EARNINGS ADJUSTMENT EQUITY
------- -------- -------- ----------- ------------
<S> <C> <C> <C> <C>
BALANCE, MARCH 31, 1996 $369 $155,294 $145,633 $42 $301,338
Net income.................. 86,382 86,382
Exercise of employee
stock options............. 3 3,926 3,929
Tax benefits from exercise
of stock options.......... 5,812 5,812
Translation adjustment...... 3 3
---- ------- ------- ----- -------
BALANCE, MARCH 31, 1997 372 165,032 232,015 45 397,464
Net income.................. 49,401 49,401
Exercise of employee
stock options............. 2 2,815 2,817
Tax benefits from exercise
of stock options.......... 869 869
Translation adjustment...... (74) (74)
---- ------- ------- ------ --------
BALANCE, SEPTEMBER 30, 1997
(UNAUDITED) $374 $168,716 $281,416 ($29) $450,477
==== ======== ======== ====== ========
See Accompanying Notes to Condensed Consolidated Financial Statements
</TABLE>
6<PAGE>
TOMMY HILFIGER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated
financial statements have been prepared by Tommy Hilfiger
Corporation (the "Company") in a manner consistent with that
used in the preparation of the consolidated financial
statements included in the Company's 1997 Annual Report as
filed with the Securities and Exchange Commission on Form 10-K
(the "Form 10-K"). Certain items contained in these statements
are based on estimates. In the opinion of management, the
accompanying financial statements reflect all adjustments,
consisting of only normal and recurring adjustments, necessary
for a fair presentation of the financial position and results
of operations and cash flows for the periods presented. All
significant intercompany accounts and transactions have been
eliminated.
Operating results for the six month period ended September
30, 1997 are not necessarily indicative of the results that may
be expected for the fiscal year ending March 31, 1998. These
unaudited financial statements should be read in conjunction
with the financial statements included in the Form 10-K.
The financial statements as of and for the six month and
the three month periods ended September 30, 1997 and 1996 are
unaudited. The Condensed Consolidated Balance Sheet as of
March 31, 1997, as presented, has been prepared from the
Consolidated Balance Sheet as of March 31, 1997 included in the
Company's Form 10-K.
NOTE 2 - INVENTORIES
Inventories are summarized as follows:
September 30, 1997 March 31, 1997
------------------ --------------
Finished Goods....... $180,456,000 $122,237,000
Raw Materials........ 1,881,000 1,610,000
------------ ------------
$182,337,000 $123,847,000
============ ============
7<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the percentage
relationship to net revenue of certain items in the Company's Condensed
Consolidated Statements of Operations:
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------- ------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net revenue.................... 100.0% 100.0% 100.0% 100.0%
Cost of goods sold............. 51.9 52.1 51.1 51.4
----- ----- ----- -----
Gross profit................... 48.1 47.9 48.9 48.6
Selling, general and
administrative expenses...... 30.0 30.4 28.0 29.0
---- ---- ---- ----
Income from operations......... 18.1 17.5 20.9 19.6
Interest expense............... 0.2 0.2 0.2 0.2
Interest income................ 0.9 1.0 0.7 0.8
---- ---- ---- ----
Income before income taxes..... 18.8 18.3 21.4 20.2
Provision for income taxes..... 6.4 6.2 7.2 6.7
---- ---- ---- ----
Net income..................... 12.4 12.1 14.2 13.5
==== ==== ==== ====
</TABLE>
Six months ended September 30, 1997 compared to six months ended
September 30, 1996
The Company's net income increased 34.7% to $49,401,000,
or $1.30 per share, during the six months ended September 30,
1997 from $36,668,000, or $.97 per share, in the corresponding
period of fiscal 1997.
Net revenue increased $95,245,000, or 31.4%, to
$398,281,000 during the six months ended September 30, 1997
from $303,036,000 during the six months ended September 30,
1996. This improvement is principally due to volume increases
in each of the Company's operating divisions, as outlined
below.
Wholesale net revenue has increased to $278,704,000 in the
first six months of fiscal 1998 from $222,878,000 in the
corresponding period of fiscal 1997, an improvement of
$55,826,000 or 25.0%. This improvement consists of a menswear
wholesale sales increase of 16.9% and a boyswear wholesale
sales increase of 72.6%. During the six months ended September
30, 1997, menswear wholesale sales were $222,486,000 while
boyswear wholesale sales were $56,218,000. In the
corresponding period last year, menswear wholesale sales were
$190,300,000 while boyswear wholesale sales were $32,578,000.
Substantially all of these increases were due to increases in
volume which resulted primarily from increased sales to
existing customers. The increased sales to existing customers
were partially the result of the Company's in-store shop and
fixtured area expansion program, whereby certain of the
Company's customers have increased the amount of square footage
where the Company's products are featured.
Net revenue in the Company's retail division increased
34.0% to $91,101,000 in the first six months of fiscal 1998
from $67,966,000 in the corresponding period of fiscal 1997.
The increase in the number of stores as well as an increase in
sales at existing stores contributed to the increased revenue.
Of the total increase of $23,135,000, $6,018,000 was
attributable to retail stores opened since September 30, 1996.
The total number of retail stores open as of September 30, 1997
and 1996 were 59 and 52, respectively.
Net revenue from royalties and buying agency commissions
increased 133.6% to $28,476,000 during the six months ended
September 30, 1997 from $12,192,000 during the six months ended
September 30, 1996. This increase reflects the incremental
revenue associated with a general increase in sales of existing
licensed products and buying agency services.
Gross profit as a percentage of net revenue increased to
48.1% in the first six months of fiscal 1998 from 47.9% in the
first six months of fiscal 1997. This increase is attributable
to the increases in retail operations and royalties and buying
agency commissions,
8<PAGE>
each of which had higher percentage revenue increases, and
which produce higher margins, than wholesale operations.
This was partially offset by lower margins in menswear whole-
sale operations and a greater contribution to wholesale
operations of childrenswear, which produces lower margins
than menswear.
Selling, general and administrative expenses, as a
percentage of net revenue, decreased to 30.0% in fiscal 1998
from 30.4% in fiscal 1997. This decrease is due to leveraging
these expenses against the higher revenue base. Selling,
general and administrative expenses increased to $119,557,000
in the first six months of fiscal 1998 from $92,184,000 in the
corresponding period of fiscal 1997. The overall increase is
primarily due to increased volume-related expenses of the
Company's wholesale and retail operations to support the higher
revenue. In addition, depreciation and amortization increased
due to the greater number of in-store shops and fixtured areas.
The provision for taxes increased to 33.9% of income
before taxes in the six months ended September 30, 1997 from
33.7% in the six months ended September 30, 1996.
Three months ended September 30, 1997 compared to
three months ended September 30, 1996
The Company's net income increased 32.4% to $31,894,000,
or $.84 per share, in the quarter ended September 30, 1997 from
$24,090,000, or $.63 per share, in the corresponding quarter
last year.
Net revenue increased to $224,546,000 in the second
quarter of fiscal 1998 from $178,907,000 in the second quarter
of fiscal 1997, an improvement of $45,639,000, or 25.5%. This
increase is primarily due to volume increases in each of the
Company's operating divisions, as outlined below.
Wholesale net revenue increased to $153,260,000 in the
second quarter of fiscal 1998 from $128,933,000 in the second
quarter of fiscal 1997, an improvement of 18.9%. This
improvement consists of a menswear wholesale sales increase of
9.0% and a boyswear wholesale sales increase of 70.8%. During
the quarter ended September 30, 1997, menswear wholesale sales
were $118,205,000 while boyswear wholesale sales were
$35,055,000. In the corresponding quarter last year, menswear
wholesale sales were $108,407,000 while boyswear wholesale
sales were $20,526,000. Substantially all of these increases
were due to increases in volume which resulted primarily from
increased sales to existing customers. The increased sales to
existing customers were partially the result of the Company's
in-store shop and fixtured area expansion program, whereby
certain of the Company's customers have increased the amount of
square footage where the Company's products are featured.
Net revenue in the Company's retail division increased
27.4% to $54,948,000 during the second quarter of fiscal 1998
from $43,123,000 in the second quarter of fiscal 1997. The
increase in the number of stores as well as an increase in
sales at existing stores contributed to the improved revenue.
Of the total increase of $11,825,000, $3,800,000 was
attributable to retail stores opened since September 30, 1996.
A total of 59 stores were open as of September 30, 1997
compared to 52 stores as of September 30, 1996.
Revenue from royalties and buying agency commissions
increased 138.5% to $16,338,000 in the second quarter of fiscal
1998 from $6,851,000 in the corresponding quarter of fiscal
1997. This increase reflects the incremental revenue associated
with a general increase in sales of existing licensed products
and buying agency services.
Gross profit as a percentage of net revenue increased to
48.9% in the second quarter of fiscal 1998 from 48.6% in the
second quarter of fiscal 1997. The increase is attributable to
increases in retail operations and royalties and buying agency
commissions, each of which had higher revenue increases, and
which produce higher margins, than wholesale operations. This
was partially offset by lower margins in menswear wholesale
operations and a greater contribution to wholesale operations
of childrenswear, which produces lower margins than menswear.
Selling, general and administrative expenses, as a
percentage of net revenue, decreased to 28.0% in the second
quarter of fiscal 1998 from 29.0% in the second quarter of
fiscal 1997. This decrease is due to leveraging these expenses
against the higher revenue base. Selling, general and
administrative expenses increased to $62,913,000 in the second
quarter of fiscal 1998 from $51,796,000 in the corresponding
period of fiscal 1997. The overall increase is primarily due
to increased volume-related expenses of the Company's wholesale
and retail operations to support the higher revenue. In
addition, depreciation and amortization increased due to the
greater number of in-store shops and fixtured areas.
The provision for income taxes increased to 33.7% of
income before taxes in the second quarter of fiscal 1998 from
33.4% in the corresponding period of fiscal 1997.
9<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary funding requirements are to finance
working capital and the continued growth of its business.
Primarily, this includes the purchase of inventory in
anticipation of increased sales of the wholesale and retail
divisions as well as capital expenditures related to the
expansion of the menswear in-store shop and boyswear fixtured
area programs and additional retail stores. The Company's
sources of liquidity are cash on hand, cash from operations and
available credit.
As of September 30, 1997, the Company had approximately
$80,729,000 of cash and cash equivalents and $20,000,000 of
short-term investments compared to a year-end balance of
approximately $109,908,000 of cash and cash equivalents. This
represented an overall decrease of $9,179,000 due to cash used
in operating and investing activities, partially offset by cash
provided by financing activities. A detailed analysis of the
changes in cash and cash equivalents is presented in the
Condensed Consolidated Statements of Cash Flows.
Net cash used in operating activities during the first six
months of fiscal 1998 was $6,932,000. This amount is primarily
made up of an increase in working capital offset, in part, by
cash generated from net earnings. The increase in working
capital is principally due to a higher inventory level which
increased 47.2% to $182,337,000 at September 30, 1997 from
$123,847,000 at March 31, 1997. Higher inventory levels at
September 30, 1997 were attributable to a planned build-up of
inventory in anticipation of the holiday and spring seasons of
fiscal 1998 and increased retail division inventory. Also
contributing to the increased working capital is an increase
of $24,729,000 in accounts receivable from March 31, 1997 to
September 30, 1997. This increase is a result of the timing
of the Company's revenue, which is higher in the second fiscal
quarter than in the fourth fiscal quarter.
Capital expenditures were $31,453,000 for the six months
ended September 30, 1997, compared with $49,181,000 for the six
months ended September 30, 1996. Significant capital
expenditures in the first six months of fiscal 1998 include
additions related to the Company's first flagship store in
Beverly Hills and the expansion of certain of the Company's in-
store shops. The fiscal 1997 amount includes the purchase of
the property which houses the Company's executive offices,
along with its primary sales, marketing and licensing offices
and its main licensees' showrooms, for approximately
$25,875,000.
In July 1996, the Company entered into an amended and
restated revolving credit agreement (the "Credit Agreement")
effective April 1, 1996. The Credit Agreement, which expires
in June 1999, provides for direct borrowings, bankers
acceptances and letters of credit of amounts ranging from
$100,000,000 in fiscal 1997 to $150,000,000 in fiscal 1999.
Available borrowings under the Credit Agreement are subject to
the timed increase of availability under the Credit Agreement
and are based upon eligible accounts receivable, inventory and
open letters of credit. As of September 30, 1997, $125,000,000
was available for utilization under the Credit Agreement.
Obligations under the Credit Agreement are collateralized by
substantially all the assets of the Company's U.S. operations.
Direct borrowings under the Credit Agreement, which were
limited to $75,000,000 as of September 30, 1997, accrue
interest at varying interest rates.
At September 30, 1997, total short-term borrowings of
$33,084,000 consisted of $6,800,000 of borrowings under the
credit agreement and open letters of credit for inventory
purchased of $26,284,000. Additionally, at September 30, 1997,
Tommy Hilfiger U.S.A., Inc. ("TH USA"), a wholly owned
subsidiary of the Company, was contingently liable for
unexpired bank letters of credit of $32,454,000 related to
commitments of TH USA to suppliers for the purchase of
inventories.
10<PAGE>
The Credit Agreement contains various covenants and, among
other matters, includes certain restrictions upon capital
expenditures, investments, indebtedness, loans and advances and
transactions with related parties. In addition, the Credit
Agreement prohibits certain of the Company's operating
subsidiaries which are borrowers or guarantors under the Credit
Agreement from paying any dividends. Because Tommy Hilfiger
Corporation is a holding company, dividends or other advances
from its subsidiaries will be required to fund any cash
dividends to holders of Ordinary Shares. Such dividend
restrictions are not expected to have an adverse impact on the
Company. The Credit Agreement also requires the maintenance of
minimum tangible net worth and interest coverage ratios. The
Company was in compliance with all covenants under the Credit
Agreement as of, and for the period ended, September 30, 1997.
Cash requirements in fiscal 1998 will primarily include
capital expenditures relating to the in-store shop and fixtured
area programs and the opening of additional retail stores, as
well as flagship stores. The Company believes the amount of
capital expenditures in fiscal 1998 will be consistent with
fiscal 1997 and the Company intends to fund its cash
requirements for fiscal 1998 and future years from available
cash balances, internally generated funds and borrowings
available under the Credit Agreement. The Company believes
that these resources will be sufficient to fund its cash
requirements for such periods.
SAFE HARBOR STATEMENT
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995. In addition to the historical
information contained herein, there are matters discussed which
are hereby identified as "forward-looking statements" for
purposes of the Safe Harbor Statement. These forward-looking
statements involve risks and uncertainties, including but not
limited to economic, competitive, governmental and
technological factors affecting the Company's operations,
markets, products, services and prices.
11<PAGE>
PART II
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On October 27, 1997, the Company held its Annual Meeting
of Shareholders at The Sandy Lane Hotel, Sandy Lane, St. James,
Barbados.
The following matters were voted upon at the meeting:
(i) the election of four directors to the Board of
Directors of the Company for a term to expire at the 2000
Annual Meeting of Shareholders;
(ii) a proposal to amend the Company's Stock Option Plans
to increase by 750,000 the number of Ordinary Shares, par
value $.01 per share, of the Company authorized for
issuance under the Stock Option Plans of the Company and
its subsidiaries; and
(iii) a proposal to ratify the selection of Price
Waterhouse LLP as the Company's auditors for the fiscal
year ending March 31, 1998.
With respect to the election of the directors, the
following votes were cast:
Nominee For Withheld Authority
Benjamin M.T. Ng 29,380,031 214,416
Lawrence S. Stroll 27,413,807 2,180,640
Lester M.Y. Ma 29,373,638 220,809
Clinton V. Silver 29,433,759 160,688
With respect to the amendment to the Company's Stock
Option Plans, a total of 20,060,980 votes were cast in favor of
the proposal, 9,394,242 votes were cast against and 139,225
votes abstained. There were 0 broker non-votes with respect to
this proposal.
With respect to the approval of Price Waterhouse LLP as
auditors, a total of 29,467,168 votes were cast in favor of the
proposal, 43,725 votes were cast against and 83,554 votes
abstained.
There were a total of 37,361,994 shares entitled to vote,
in person or by proxy, at the meeting. A total of 7,767,547
shares did not vote.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11. Computation of Net Income Per Ordinary Share
27. Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any Current Reports on Form
8-K during the three months ended September 30, 1997.
12<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized:
Tommy Hilfiger Corporation
Date: November 5, 1997 By: /s/ Joel J. Horowitz
Joel J. Horowitz
Chief Executive Officer
and President
Tommy Hilfiger Corporation
Date: November 5, 1997 By: /s/ Steven A. Sorrillo
Steven A. Sorrillo
Principal Accounting Officer
Tommy Hilfiger Corporation
13<PAGE>
EXHIBIT INDEX
Exhibit Number Description Page Number
11. Computation of Net Income Per Ordinary Share 15
27. Financial Data Schedule 16
14
EXHIBIT 11
<TABLE>
TOMMY HILFIGER CORPORATION
COMPUTATION OF NET INCOME PER ORDINARY SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<CAPTION>
SIX
MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------- --------------------
1997 1996 1997 1996
---- ---- ---- ----
FINANCIAL STATEMENT PRESENTATION
PRIMARY
<S> <C> <C> <C> <C>
Average shares outstanding 37,306 37,038 37,350 37,038
Net effect of dilutive
stock options based on the
treasury stock method using
average market price 622 704 626 946
------- ------- ------- -------
Total 37,928 37,742 37,976 37,984
======= ======= ======= =======
Net Income $49,401 $36,668 $31,894 $24,090
======= ======= ======= =======
Per share amount $ 1.30 $ 0.97 $ 0.84 $ 0.63
======= ======= ======= =======
FULLY DILUTED
Average shares outstanding 37,306 37,038 37,350 37,038
Net effect of dilutive stock
options based on the
treasury stock method using
the greater of the average
or ending market price 708 1,010 798 1,068
------- ------- ------- -------
Total 38,014 38,048 38,148 38,106
======= ======= ======= =======
Net Income $49,401 $36,668 $31,894 $24,090
======= ======= ======= =======
Per share amount $ 1.30 $ 0.96 $ 0.84 $ 0.63
======= ======= ======= =======
</TABLE>
15
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
EXHIBIT 27
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Tommy
Hilfiger Corporation Condensed Consolidated Balance Sheet as of September 30,
1997 and Condensed Consolidated Statement of Operations for the six months then
ended and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 80,729
<SECURITIES> 0
<RECEIVABLES> 104,713
<ALLOWANCES> 0
<INVENTORY> 182,337
<CURRENT-ASSETS> 409,217
<PP&E> 138,784
<DEPRECIATION> 0
<TOTAL-ASSETS> 555,862
<CURRENT-LIABILITIES> 102,946
<BONDS> 0
0
0
<COMMON> 374
<OTHER-SE> 450,103
<TOTAL-LIABILITY-AND-EQUITY> 555,862
<SALES> 0
<TOTAL-REVENUES> 398,281
<CGS> 0
<TOTAL-COSTS> 206,870
<OTHER-EXPENSES> 116,676
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 74,735
<INCOME-TAX> 25,334
<INCOME-CONTINUING> 49,401
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<EPS-PRIMARY> 1.30
<EPS-DILUTED> 0
16
</TABLE>
