Esprit Holdings chairman Michael Ying Lee-yuen is stepping down from his post, the global fashion wholesale and retailing chain disclosed yesterday, as it released improved full-year net profit growth of 16.4 per cent.
In an unexpected announcement, the company said that at the end of the year, chief executive Heinz Krogner will succeed Mr Ying while retaining his current post. Mr Ying will then become a non-executive director.
For the year to June, the blue chip's net income reached HK$3.74 billion, up from HK$3.21 billion posted a year ago, on turnover rising 13.2 per cent to HK$23.35 billion. The net figure was in line with a mean consensus forecast of HK$3.76 billion from 18 analysts polled by Reuters.
The company proposed a final dividend of 73 HK cents per share and a special dividend of HK$1.08 per share, representing a full-year dividend payout ratio of 75 per cent.
The company, which had struggled with poor merchandising last year, said sales had regained momentum in the second half as shown by its 9 per cent full-year same store sales increase.
Esprit only recorded a comparable sales growth of 5 per cent in the first half due to disappointing buyer response to its women's casual and collection lines, affected by the failing health of two managers and the edginess of some of its clothing.
Germany, which contributed 47.7 per cent of Esprit's revenue, will remain the company's growth driver, according to deputy chairman and group chief financial officer John Poon Cho-ming, dismissing concern from some analysts about an increase in value-added taxes there from 16 per cent to 19 per cent next year cutting into profit margins.