Esprit Holdings Limited (SEHK: 330) this week announced interim results for the six months ended December 31, 2007.

“We are excited to report another strong set of results. Our performance is a testimony of the strength of our business model and our capability to sustain growth,” said Mr. Heinz Krogner, Chairman and Group CEO.

“In the first half of the financial year, persistent efforts to improve operating efficiency and economies of scale have resulted in an increase of 0.7% point in operating profit margin to 21.7%. Also, benefiting from the recent German tax reform, net profit margin expanded by 1.4% points to 17.8%,” commented Mr. John Poon, Deputy Chairman and Group CFO.

“In view of the robust cash position and anticipated strong operating cash flow going forward, the Board has approved an interim dividend of HK$0.95 per share to be paid on April 3, 2008, representing 35.7% yoy increase,” added by Mr. Poon.

Thomas Grote, President of ESPRIT brand said, “our focuses on generating organic growth and expanding our network has led to over 20% turnover growth in all key distribution channels, regions, and product divisions. The turnover growth was not only driven by retail comp-store sales growth of 7.9% but also by strategic expansion of selling space in core as well as potential markets.”

Mr. Grote added, “We see the potential weakening of global economic condition an opportunity to gain market share, particularly through retail expansion.  In the second half of the financial year, over 60 retail stores will be opened as we steadily progress towards our target of opening 400 stores in 3 years.”  

 “This year marks the 40^th anniversary of Esprit.  A series of promotional events will be held to celebrate this important milestone.  In midst of the recent economic environment, we remain confident in enhancing shareholders value through our proven business model and growth strategies,” concluded by Mr. Krogner.

ESPRIT HOLDINGS LIMITED

UNAUDITED CONSOLIDATED FINANCIAL DATA

(in HK$ millions, except per share data)

 

	For the six months ended 31 December 2007	Year-on-year Growth
Turnover	18,527	27%
Operating profit	4,020	31.3%
Operating profit margin	21.7%	0.7% pt
Profit attributable to Shareholders	3,293	37.2%
Net profit margin	17.8%	1.4% pts
Basic EPS	HK$2.67	36.2%
Net cash	5,502	53.3%
Interim Dividend (per share)	HK$0.95	35.7%

Esprit Holdings Limited is a constituent stock of the Hang Seng Index, MSCI Hong Kong Index, FTSE All-World Index for Hong Kong, S&P/HKEx LargeCap Index and S&P Asia 50 Index. Its subsidiaries are engaged in the retail and wholesale distribution of quality lifestyle products designed under its globally recognized Esprit and edc brands, and of cosmetic and body care products under its Red Earth brand. The Group operates over 650 directly managed retail stores worldwide and distribute through approximately 14,000 controlled-space wholesale point-of-sales internationally, occupying around 950,000 square meters of retail space in more than 40 countries