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Case Code: BSTR491
Case Length: 13 Pages 
Period: 2005-2010  
Pub Date: 2016
Teaching Note: Available
Price:Rs.500
Organization : Tommy Hilfiger
Industry :Apparel
Countries : USA
Themes:  Business Strategy / Brand Management
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Tommy Hilfiger (A) The Rise and Fall

 
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INTRODUCTION

 

In 2000, after a decade of stellar growth and stock performance, Tommy Hilfiger Corporation (Tommy), a multinational American apparel designer and manufacturer, witnessed stagnation and decline (Refer Exhibit I for the details of Tommy’s Declining Growth Post 2000) in its top-line as well as profitability. Shareholder pressure was high; the Tommy share, which had once been the favorite of Wall Street, plummeted by 32% to US$ 9 after Tommy announced in April 2000 that profit for the year ending March 2001 would fall by 30- 40% to around US$ 206 million. This made Tommy an easy prey for hostile acquisitions. “It’s finished as a stock. It’s going to take a long time for investors to return,” said John Hayes, an analyst at Independence Investment Associates which had owned Tommy’s shares. In 2001, the revenue decreased by 5%. In 2002, the top leadership exited, even as the revenue remained stagnant...

 

 
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