Esprit Holdings Limited announced final results for the fiscal year ended June 30, 2006.
"This year, Esprit has once again demonstrated its ability to achieve both our operational and financial targets. We have strengthened our foundation for future success through protecting and enhancing the Esprit brand, broadening our geographic reach and by bolstering our management team", commented Mr. Michael Ying, Chairman of the Board.
Mr. Heinz Krogner, Deputy Chairman and Group CEO said, "With local currency turnover growth of 18.2 percent resulting in record net earnings of over HK$3.7 billion, our performance reflects the vibrancy of our high-quality products."
"Key performance indicators are in-line with targets set by management at the beginning of the year. In addition to a retail comp-store sales growth of 9.0 percent, we saw further improvement at margin fronts where EBIT margin increased by 0.6 percent point to 20.4 percent and net profit margin increased by 0.4 percent point to 16.0 percent,"
Mr. John Poon, Deputy Chairman and Group CFO stated, "With an impressive 74.9 percent increase in this financial year's free cash flow, our Board of Directors is delighted to propose a final dividend and a special dividend totaling HK$1.81 per share which represents a full-year dividend payout ratio of 75 percent."
"In the new financial year, the Group is planning to open over 1,500 controlled-space wholesale point-of-sales and over 80 directly managed retail stores," Thomas Grote, President of ESPRIT brand stated, "we will work meticulously to enhance our product assortments and accommodate new trends into our product lines."
"I have great confidence in Thomas Grote's abilities and trust his leadership and dedication to further strengthen the management team to herald a new phase of success for the Esprit brand."
Mr. Krogner continued, "With our proven growth strategies, we are confident that the Group will again achieve the double-digit percentage growth target in the upcoming year, and continue to deliver excellent returns in the years ahead," Mr. Krogner concluded.
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