HILFIGER’S SEC FILING SHOWS SALARY JUMP
Byline: Catherine M. Curan
NEW YORK — The salary of designer Tommy Hilfiger is keeping pace with the high-flying momentum of the men’s wear company that bears his name.
Hilfiger, who plans to reenter the women’s market next year, was paid $3.5 million by Tommy Hilfiger Corp. in the year ended March 1994, up from $2.2 million in fiscal 1993. Under his contract, he receives a base salary of $900,000, plus 1.5 percent of sales above $48.3 million by Tommy Hilfiger USA, the design and marketing unit of the corporation.
These and other details of the company are disclosed in a Securities and Exchange Commission filing for the 7 million Hilfiger-share offering to be made by Apparel International Holdings Ltd., one of the corporation’s prime owners. The offering, as reported, will slice AIHL’s stake in the Hilfiger firm to 9.4 percent from 29.2 percent in return an for an estimated $145 million.
The biggest piece of AIHL, 70 percent, is shared equally by Silas Chou, chairman of Tommy Hilfiger Corp., and Lawrence Stroll, a director and chief executive officer of Tommy Hilfiger Far East, the buying arm of the business. The designer holds 22.5 percent, and Joel Horowitz, ceo of Tommy Hilfiger Corp., holds 7.5 percent.
The filing also discloses that Edwin Lewis, who served as ceo in fiscal 1994, received $2.2 million. This includes a base salary of $500,000 plus a bonus of $1.7 million. Lewis took the ceo slot at Pepe, a related jeans company, in April 1994. Horowitz, who had been chief operating officer in 1994, earned $2.6 million, comprising a base salary of $375,000 plus a bonus of $2.3 million. Chou pulled down a $600,000 salary and a $325,000 bonus, while Stroll earned $475,000. The SEC filing also discloses that on Dec. 31, 1994, Tommy Hilfiger Corp.’s order backlog was $146.3 million, up from $117.6 million. As of Dec. 31, there were 627 men’s in-store shops versus 429 a year earlier. There were 484 boys’ fixtured areas at yearend versus 375 at the end of 1993. As of Dec. 31, the company also operated 17 outlet stores and five Tommy Hilfiger specialty stores. It plans to add 15 outlets and three specialty stores by March 1996.
In the latest quarter ended Dec. 31, men’s wear wholesale sales increased 24.2 percent to $67.3 million, boys’ wear wholesale sales climbed 27.3 percent to $8.4 million, and retail sales catapulted to $11.5 million from $1.5 million.
Revenues from royalties and buying agency commissions jumped 73.3 percent to $1.5 million.
Hilfigers’ biggest customers in fiscal 1994 were Dillard Department Stores, 23 percent; Federated Department Stores (including R.H. Macy), 22 percent, and May Department Stores, 13 percent. — Fairchild News Service