American fashion brand Tommy Hilfiger’s joint venture with Arvind has reported a 24% rise in sales and 66% jump in profits last fiscal due to strong retail and wholesale sales.
Tommy Hilfiger Arvind Fashion posted revenues of Rs 235 crore and Rs 10 crore in profits for the year ended March 2014, the company informed the Registrar of Companies (RoC).
“The company is planning to continue its efforts to grow the business rapidly in the coming financial year,” it said. The performance of Tommy Hilfiger, one of the first global premium brands to enter the country about 10 years ago, however, pales in comparison to Spanish brand Zara, which reported revenues of Rs 580 crore last fiscal despite entering India six years after Tommy.
While revenues at Tommy Hilfiger Arvind have grown almost three times in three years from about Rs 80 crore in 2011, it is lagging behind its own earlier projections. In an application seeking the Department of Industrial Policy and Promotion (DIPP) nod to its expansion plans submitted in June 2012, the company had projected revenues to grow to Rs 320 crore at the end of fiscal year 2012-13 itself.
