TOMMY HILFIGER ANNOUNCES RECORD RESULTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2008

• Total Group net sales increased 14.4% to € 1,340 million
• Global retail value of net sales of € 3 billion
• European sales up 22.8% to € 707 million with an increase in EBITDA margin to 26.0% (FY07:25.4%)
• North American sales of $836 million up 2.5% with EBITDA margin at 14.2% (FY07:13.4%)
• EBITDA grew 23.9% to €268 million
• EBITDA margin increase of 160 basic points to 20.0% of sales.

• 140 new freestanding store openings, taking the global store portfolio to 796
• Entered into a strategic alliance with Macy’s, one of the United States’ premier department stores, due to commence in Fall 2008
• Acquired former licensees Tommy Hilfiger Japan and Tommy Hilfiger Europe Footwear
• Signed lease for global flagship store on Fifth Avenue in New York City

Commenting on the results Fred Gehring, Chief executive Officer, said:

“We are extremely proud of these record financials. For many years now our international business outside of the US has delivered consistent growth at a premium position. We are especially pleased as well that the initiatives we have undertaken in the past two years to elevate and reposition the brand in the US have delivered such strong results. Not only does our global forward order book show a double digit increase for the fall of ’08, our US business at our retail stores and at Macy’s has performed exceptionally well throughout the year and in the currently challenging economic environment. We believe that the Group is now perfectly aligned globally and is strongly positioned for continued global expansion.”

Tommy Hilfiger is one of the world’s most recognized premium lifestyle brands and one of the largest designer apparel brands globally. For over twenty years, Tommy Hilfiger has offered consumers around the world a range of high quality product lines including men’s, women’s and children’s casual apparel, sportswear, denim, and a range of licensed products such as accessories, fragrances, and hope furnishings. Tommy Hilfiger has been built upon a powerful design philosophy- Classic American Cool- which brings a fresh perspective to traditional, all-American styling by giving time-honored classics an updated look for today. Distributed in over 65 countries, the Company’s products can be found in this network of nearly 800 dedicated retail stores, as well as in leading specialty and department stores around the world. The brand is supported by approximately 8,000 employees from around the world who share the Tommy Hilfiger values: those of quality, respect, entrepreneurship, optimism, and the spirit of youth.

Throughout Europe, both our wholesale and retail businesses continued to show strong double-digit growth with further improved gross margins.

In Europe, wholesale revenue increased by 22.4% due to a strong performance from all divisions and countries and the September 2007 acquisition of the Group’s former footwear licensee, Tommy Hilfiger Footwear, which accounted for 8.2% points of the growth.

Retail revenue increased by 26.4% mainly due to new and refurbished stores. The like-for-like growth was 3.8%.

Gross margins in both channels were stronger by 120 basic points compared to the year ended 31 March 2007, largely caused by higher price points and improved sourcing.

In the U.S., our initiatives to reposition the brand by trading up have paid off substantially. After a number of years of decline, the U.S. business has started to contribute to the overall growth of the group (4.9% for FY08 versus FY07 for retail and wholesale combined).

Retail net revenue for the U.S. segment was driven by comp growth of 6.7% for the year, and an improved gross margin of 260 basic points. In addition the group opened 13 new stores. The specialty stores showed significantly higher sales and gross margins compared to FY07.

Total U.S. wholesale net revenue decreased 11.4% following planned declines in discontinued product lines, wholesale customer orders and doors and reduced clearance sales. This was partially offset by increase in sales at better margins to Macy’s, where business has performed very well with double digit comp sales year on year. Accordingly, the wholesale gross margin improved by 480 basic points. Licensing net revue decreased as underperforming licensees were discontinued during the period.

In Canada, total revenue decreased by 2.1%, which was a mix of solid growth in retail and a decline in wholesale due to a planned reduction of doors. This resulted in an overall increase in gross margin of 250 basic points.

In the Rest of the World all businesses have shown double digit growth, with particularly strong performances in Japan, Korea and Latin and South America, which increased the licensing revenue.

There are nearly 800 Tommy Hilfiger stores around the world, of which approximately 50% are operated by the Company with the balance operated by franchises, distributors or licensees. During the fiscal year ending March 31, 2008, 140 new stores were opened, 42 of which are Company owned.

The European forward order book for wholesale continues to show a double digit increase for Fall 2008 whereas retail comparable results on a pan European basis are up mid single digit on a comparative basis versus the previous year for the Spring ’08 season to date. Most notable we have seen the brand perform very well in the U.S. in a difficult economic environment. For the Spring ’08 season, comparable sales were up by high single digits for our retail business (period February 1, 2008 through May 31, 2008) whereas our business at Macys has experienced double digit growth on a comparable basis for the same period.

FINANCIAL REVIEW (on a comparable basis)