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'Esprit will emerge as bigger & stronger company' - Mr Heinz

01 Sep '09

2 min read

Esprit Holdings Limited announced final results for the year ended 30 June 2009. The Group's turnover base maintained stable year-on-year in local currency terms, or HK$34.5 billion, amidst macro headwind. Retail turnover recorded a 10.0% jump in local currency as customer demand remained resilient as shown by comparable store sales growth of 3.5%. The retail business now contributes over 47% (FY07/08: 43%) to Group turnover.

The Group generated operating profit of HK$5,729 million with an operating profit margin of 16.6% (FY07/08: 20.7%). This year, the selling space of retail and franchise stores each grew by around 15% as the Group expands capacity to maximise the upside potential when the market recovers. During the year, the Group improved operating efficiency through revamping the IT system and cost cutting initiatives. The net profit margin of the Group was 13.8% (FY07/08: 17.3%).

The Group maintained a net cash balance of HK$4.8 billion and the Board has proposed a final and special dividend of HK$2.05 per share, together with interim dividend paid, represents a dividend payout ratio of 75%.

"I have always believed in the strength of Esprit. This year, the robustness of our Company was put to the ultimate stress test. On many fronts, I am proud to see that the evidence of the resilience of our business model is abundant. Nevertheless, I see difficult times as a wake-up call and I have taken this opportunity to strengthen and consolidate the operating platform, all in preparation for future growth as the global economy recovers. I am convinced that Esprit will emerge as a bigger and stronger company," remarked Mr. Heinz Krogner, Chairman and Group CEO.

Esprit Holdings Limited

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