Esprit Announces Growth in Clothing Sales

Friday 29th of August 2008 01:59:24 PM

Esprit Announces Growth in Clothing Sales

Esprit announced that its turnover growth for the fiscal year ending June 30th was 25.6%. The the operating margins remained the same for the same time period.

"The global economy is undoubtedly facing a tough macro environment. It is during this time, however, that a strong company like Esprit demonstrates how such a storm can be weathered," Mr. Heinz Krogner, Chairman and Group CEO was quoted as saying. The tough economic times countries are facing are causing many clothing brands to experience declining sales. The purchase of fashion items and durable goods are often the first to be cut from consumer budgets.

The Esprit marketing strategy includes entering new retail markets around the world per Mr. Thomas Grote who is President of Esprit. He said, "Turnover growth was fuelled by our strategic expansion plan. This year, we invested over HK$1.3 billion in capital expenditure and drove the Group's total selling space to over 1,000,000m2, comprised of directly managed retail and controlled wholesale selling space. In addition, we have entered retail markets in Spain, Norway and Finland and have launched the new concept, de. Corp." In the coming year, we will continue to seek growth opportunities and target to invest over HK$1 billion to further strengthen our global presence."

Esprit is celebrating its 40th anniversary as a clothing brand. The clothing lines are successful due to their styling and continual introducation of new concepts. You can find a range of clothing including items such as printed t-shirts, shirts, camisoles, capris and sweaters to name just a few. The company currently has a large net cash positon of HK$6.5 billion and plans on increasing dividends to stockholders. Mr. Kogner said the company will continue to be a global player in the fashion market and plans on continuing to share the success with shareholders through dividend payouts.