Hilfiger Delays Results Amid U.S. Tax Probe

Tommy Hilfiger Corp. delayed the release of fiscal second-quarter results and withdrew its earnings forecast for fiscal 2005 as it faces a federal tax probe. The news sent its shares down 5.4%.

At issue is whether payments among subsidiaries helped artificially lower the company’s tax rate. The company did issue preliminary data showing a 14% drop in pretax income in the fiscal second quarter ended Sept. 30, citing higher markdowns because of lackluster back-to-school shopping.

The U.S. attorney in New York is looking into commission rates paid from various Tommy Hilfiger subsidiaries to Tommy Hilfiger Eastern Hemisphere for certain services, and other related tax matters, the company said.

Tommy Hilfiger shares fell 51 cents to $8.94 on the NYSE.