Tuesday 11 December 2018

Irish units of Tommy Hilfiger and Calvin Klein enjoy increased profits

A ‘strong collection’ from designer Tommy Hilfiger drove sales and profits at the Irish unit of the fashion chain. Photo: Bloomberg
A ‘strong collection’ from designer Tommy Hilfiger drove sales and profits at the Irish unit of the fashion chain. Photo: Bloomberg

Gordon Deegan

Irish units of top US clothing brands Calvin Klein and Tommy Hilfiger enjoyed increased profits and revenues last year.

New accounts filed by Hilfiger Stores Ireland Ltd show that the business recorded a 27pc increase in pre-tax profits to €598,000 in the 12 months to the end of February 4 last.

Revenues rose by 1.4pc, from €23.56m to €23.88m. 

According to the directors' report, the sales increase was driven "by a strong collection". 

The directors said "administrative expenses remained at a constant level due to the management of the cost base under increasing sales".

The directors added that the next year will show a further growth in sales from continuing operations and concession opportunities. "In the years following the next year, the aim will shift from top line to bottom-line increase," they said.

Numbers employed by the company last year increased from 199 to 216 with staff costs last year totalling €3.2m.

The company's operating lease charges exceeded its wage costs with lease costs last year totalling €4.6m - a slight decrease on the €4.7m paid out in fiscal 2017. On February 4 last year, the company's shareholder funds stood at €2.8m.

At Calvin Klein Stores Ireland Ltd pre-tax profits increased by 42pc to €139,931 in the 12 months to February 4.

This followed revenues increasing by 13pc to €5.5m.

The main activity of the firm is the operation here of Calvin Klein retail outlets, concessions and one full-price store.

Revenues increased as a result of increased markdowns in the stores versus the prior year.

Numbers employed rose from 43 to 49 with staff costs totalling €803,743.

Irish Independent

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