Home / Knowledge / News / Apparel/Garments / Esprit sees strong growth in wholesale business
Esprit sees strong growth in wholesale business
10
Feb '11
Esprit Holdings Limited announced interim results for the six months ended 31 December 2010.

The Group recorded a turnover of HK$17.7 billion representing 1.6% top line growth in local currency driven by strong turnover growth of 5.9% in local currency in the second quarter and consolidation of the turnover from the China subsidiaries. Gross profit margin increased by 0.9% point to 55.6% benefiting from higher retail turnover contribution amounting to 56% of total group turnover.

The cash position remained strong at HK$7.3 billion as at 31 December 2010. The Board of Directors has declared an interim dividend of HK$1.00 per share (1H FY09/10: HK$0.74 per share) which is calculated based on the regular dividend policy of 60% of basic EPS.

Mr. Ronald Van der Vis, Group Chief Executive Officer, said “With the acquisition of the remaining equity interest in the former China Joint Venture, China is our new growth engine driving further expansion. China's turnover grew 3.2% year-on-year in local currency to HK$1.4 billion, with EBIT margin up 5.0% points year-on-year. China wholesale turnover showed 11% year-onyear growth.

“Following the successful integration phase, retail comp store growth returned to positive for the six months ended 31 December 2010. We are expanding our existing base of 169 cities as of 30 June 2010 to 183 cities as of 31 December 2010. Total number of POS increased by 7.6% from 931 as at 30 June 2010 to 1,002 as at 31 December 2010.

We are on an exciting journey to create a better and bigger ESPRIT. Our Six Strategic Initiatives are progressing well. New ideas have been developed and they are in the process of being implemented. This ranges from the sharpening of the brand position to create a clearer and consistent handwriting across our product collections, stores and communication, a new process of building our collections, a new sourcing strategy to achieve synergies and savings, as well as a new global, channel-based sales organisation to drive growth. Although not all results of our hard work are visible yet, we are confident to see the full benefits of our strategic agenda to materialise mid-term.”

Mr. Fook Aun Chew, Group Chief Financial Officer, commented, “Despite the adverse weather conditions in Europe, the Group achieved 8.7% retail turnover year-on-year growth in local currency and an improvement in gross profit margin by 0.9% point to 55.6%. The Group continues to maintain a strong balance sheet position with cash and bank balances of HK$7.3 billion and a net cash position of HK$4.7 billion as at 31 December 2010.”

The Board announces that Mr Heinz Jürgen Krogner-Kornalik (“Mr Krogner”), the Non-executive Chairman of the Board and Non-executive Director of the Company, has tendered his resignation with effect from 11 February 2011 due to his intended pursuit of other personal commitments.

Following Mr Krogner's resignation, Dr Hans-Joachim Körber (“Dr Körber) has been unanimously elected by the Board as the successor of Mr Krogner to act as the Independent Non-executive Chairman of the Board with effect from 11 February 2011. Dr Körber has been an independent non-executive director of the Company since May 2008. Dr Körber was the former chief executive officer of Metro AG for many years until his retirement in 2007. Under his guidance, Metro has grown to become one of the largest retailers in the world. Dr Körber is a well-known executive in the international commercial community with extensive experience in finance & accounting, controlling, logistics and IT, including 23 years experience in retailing.

Mr Krogner confirmed that he has no disagreement with the Board and there are no other matters with respect to his resignation that need to be brought to the attention of the shareholders of the Company.

The Board would like to take this opportunity to express its sincerest gratitude to Mr. Krogner for his valuable contributions to the Company's development and success during his tenure of office and to congratulate Dr Körber on the appointment.

Esprit Holdings Limited


Must ReadView All

Uzbekistan wants joint ventures with Hungarian textile firms

Textiles | On 20th Feb 2018

Uzbekistan wants joint ventures with Hungarian textile firms

Uzbekistan has offered Hungary to create joint ventures in the two...

Vietnam’s textile & garment exports up 10.68% in 2017

Textiles | On 20th Feb 2018

Vietnam’s textile & garment exports up 10.68% in 2017

Vietnam came very close to achieving its 2017 textile and garment...

Maharashtra’s new textile policy to privatise cooperatives

Textiles | On 20th Feb 2018

Maharashtra’s new textile policy to privatise cooperatives

The state government in India’s western state of Maharashtra, under...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

February 2018

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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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