Home / Knowledge / News / Apparel/Garments / German casual wear firm Kinghero's growth story continues…
German casual wear firm Kinghero's growth story continues…
29
Aug '12
Kinghero AG shows a constantly positive business development in the first half year 2012. Revenues of the company increased by 35.3% to EUR 56.7 million in the first six months 2012 (H1 2011: EUR 41.9 million). Also gross profit grew by 33.8% to EUR 22.0 million while the gross profit margin remained almost stable at 38.8% (H1 2011: 39.6%). With an equity ratio of 88.1% Kinghero is well prepared for future expansions.

Within the first six months 2012 Kinghero continued its growth story. The company realized revenues of EUR 56.7 million (H1 2011: EUR 41.9 million) and hence exceeded revenues of the first half year 2011 by 35.3%. One of the success factors was the increased number of distributors from 38 as at 30 June 2011 to 48 as at 30 June 2012. These distributors run a total of 370 stores. At the same time the number of KINGHERO flagship stores increased to 65 by the end of the reporting period (30 June 2011: 28 flagship stores). 
 
Besides the successful expansion of the distribution network, also the attractive product pricing, contemporary design as well as the variety and product mix of Kinghero’s portfolio contributed to the positive development. It resulted in a further increase of the average selling price per unit by 17% compared to H1 2011. 
 
Along with the revenue growth the gross profit increased significantly by 33.8% to EUR 22.0 million in H1 2012 (H1 2011: EUR 16.4 million) with an almost stable gross profit margin of 38.8% (H1 2011: 39.6%). In contrast, EBIT decreased slightly from EUR 12.6 million in the first half year 2011 to EUR 12.2 million in the same period 2012. This was mainly caused by higher selling and distribution expenses in line with the communicated strategy, higher maintenance costs for the increased number of KINGHERO flagship stores and increased administrative costs. As a result EBIT margin fell to 21.5% in H1 2012. 
 
Kinghero’s equity ratio of 88.1% shows, that the company is still very well capitalised and has enough financial resources for future investments and further expansion. 
 
Optimistic outlook
As planned in its growth strategy, Kinghero seeks to develop its existing merchandise categories – especially in accessories – and increase sales, both with distributors as well as with its own stores. Currently the company focuses on enhancing the productivity of existing selling points and is therefore partly restructuring its distribution network. For further strengthening its brand building, the company will also implement a consistent brand image for both, distributor and own shops in the second half of 2012. 
 
The overall sales and margin development in the first half of the year 2012 is in line with the company’s expectations. Based on the result of the first six months 2012, Kinghero antic


Must ReadView All

Decision in UK budget to attract investment in retail: BRC

Textiles | On 24th Nov 2017

Decision in UK budget to attract investment in retail: BRC

British finance minister Philip Hammond’s announcement in his budget...

Courtesy: Shangdong Ruyi

Textiles | On 24th Nov 2017

Shangdong Ruyi to acquire major stake in Bagir

Shangdong Ruyi Technology Group Ltd, one of the leading Asian global...

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Apparel/Garments | On 24th Nov 2017

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Chinese e-commerce firm JD.com has invested $44 million in Tiki.vn, a ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search