Fashion Change: Hilfiger's IPO Is Shelved; Pullback Reveals Anxiety In Luxury-Goods Sector Amid Market Volatility
Global market turmoil claimed its first fashion victim yesterday as Tommy Hilfiger Corp. shelved plans for an initial public offering of its shares on the Euronext Amsterdam exchange.</br></br>The company and its owner, private-equity firm Apax Partners, said the decision to shelve the IPO came even though "investor feedback has been positive."</br></br>"Considering recent volatile market conditions, management and shareholders decided to postpone an IPO process until such time that market conditions have stabilized," they said.</br></br>The pullback illustrates how the once-confident luxury-goods industry is getting skittish about whether it can attract investors at a time of roiling global markets and looming recession in the U.S. It remains to be seen how the turmoil could affect Prada SpA and Salvatore Ferragamo SpA -- two of the industry's best-known brands, which are planning listings on the Milan stock exchange this year. Prada shelved a previous plan for an IPO after the Sept. 11, 2001, attacks in the U.S.</br></br>"We are working with our advisers to determine the best timing. No decision has been made," said Prada spokesman Tomaso Galli. A spokesman for Salvatore Ferragamo couldn't be reached for comment.