Hilfiger Hires Firm to Explore Options

Tommy Hilfiger Corp. said it hired investment firm Morgan Stanley Dean Witter & Co. for advice on acquisitions and other ways to boost its value. The casual clothing designer isn’t for sale, a spokesman said. Among the options being considered are acquisitions, new business opportunities and buying back shares. Hilfiger is looking to expand its product lines and its appeal to consumers, analysts said. Companies it may be considering acquiring include Calvin Klein Inc., they said. Hilfiger made the announcement as it reported a 2.2% increase in net income for its third quarter to $59.1 million, or 62 cents a share, on a 13% rise in sales to $521.2 million. Hilfiger warned last month that fiscal third- and fourth-quarter profit would be hurt by steep discounts on its men’s and women’s clothing sold at department stores. Hilfiger’s stock has fallen from a high of $41 in August, erasing about $2.6 billion in value. The shares rose $1.44, or 11.6%, to close at $13.81 on the Big Board.