Europeans rally round US fashion icon

Tommy: Based in Hong Kong, influenced by the US, bought by Europeans

Strong European sales have helped upmarket fashion firm Tommy Hilfiger overcome economic troubles to report a 21% profits rise.

The Hong Kong-based firm, which is listed in New York and claims its clothes "epitomise the creativity and diversity of America", said profits hit $40.7m (£27.9m) for the first three months of the year.

The rise from $33.6m a year before reflected sales growth in Europe, where the company bolstered its presence last summer by buying its regional licensee for $200m.

"The major factor driving out improved operating results for the quarter was the strong contribution to both revenue and operating income of Tommy Europe," Joel Horowitz, chief executive, said.

Operational shake-ups helped an "improved" performance at US wholesale operations.

Strong womenswear sales overall offset sluggish trade in menswear and childrenswear.

Book figures

Tommy Hilfiger's figures reflected those of rival fashion house Polo Ralph Lauren, which on Wednesday credited brisk European trade for offsetting a weak US performance.

Ralph Lauren said stores had been forced to resort to price cuts to support US sales.

But bookseller Barnes & Noble revealed on Thursday it had proved more successful in winning custom, with bookstore sales up 6.6% to £865m in the first quarter.

The company's underlying loss narrowed to the equivalent of 2 cents per shares, from 12 cents per share a year before, and compared with analysts' expectations of a 5 cent per share loss.

The firm, which operates more than 800 Barnes & Noble stores and the B Dalton Bookseller chain, predicted its full year figures would also beat Wall Street estimates.

Investor reaction

Also reporting on Thursday, Foot Locker, the US's top ranking athletic footwear retailer, said earnings rose by 11% in the first quarter.

Sales at the firm's 3,600 stores were 3.3% up on a year before.

On Wall Street, Foot Locker shares stood $0.60 up at $14.10 in early trade on Thursday, with Barnes & Noble stock slid $0.38 to $32.50.

Tommy Hilfiger shares stood $0.59 up at $15.26.