Tommy Not Selling

Hong Kong-based Tommy Hilfiger Corp. forecast a quarterly net loss and said the current year would be difficult, blaming a broad malaise that has gripped the fashion industry.

The fashion apparel designer and manufacturer also said it has hired investment banking firm J.P. Morgan Chase to assist it in exploring acquisitions of additional brands, a move that appeared to dash expectations it was a takeover target, especially of Jones Apparel Group (New York). There had been speculation of possible interest by Jones in a takeover of Hilfiger because of a licensing dispute it was having with Polo Ralph Lauren (New York).

Hilfiger said that it had successfully closed 37 of the 38 U.S. specialty stores previously announced as slated for closing, at a cost below that which was originally anticipated.

Shares of the once-high-flying designer brand declined following the announcement.