Esprit in deal with MTV

Contemporary fashion label Esprit has signed a sponsorship deal with MTV for its European music awards to attract a younger customer to its new brand ‘edc'. Edc, which to date has been available in select concessions of Esprit stores, is soon to get it's own stand-alone outlets. MTV is to produce the brand's first ads, which will air around the globe. According to Marketing Magazine, it is the first time a sponsor has made a multi-territory partnership with the music awards.

Further activity will launch across MTV and edc websites, in retailer's shops across Europe, as well as cinema screens. Esprit brand president Thomas Grote stated: “From now on, edc is taking its own path as a brand.” Esprit de corps, from which edc takes its name, was founded in San Francisco in 1968 and operates 630 stores in over 40 countries.

www.edc.com
18 July 2007

Esprit opens in Liverpool

Lifestyle label Esprit has opened a flagship franchise store in Liverpool’s Met Quarter, with a 4,300 sq ft unit trading across two floors.
The store is part of an ambitious programme of franchise partnerships designed to make the brand a familiar name on the UK and Irish high street, and follows hot on the heels of the opening of a franchise store in Newbridge, Republic of Ireland, in April.

The two new openings bring Esprit’s current UK standalone total to 22, with the company operating nine wholly owned stores alongside 13 franchises. August will see the opening of a 14th franchise store in Perth, Scotland, with company bosses hoping for a possible 10 further openings over the next 12 months. Having reported a strong start to 2006, Esprit’s UK stores are now reporting double digit growth on like-for-like sales.
Esprit is also planning on the further expansion of both its shop-in-shop concept, currently featured in over 30 UK department stores, and its wholesale independent business.

16 June 2006

No sweat for Esprit Sports

Esprit Sports has begun selling high-function tops which prevent body odour, thanks to an innovative material developed by Cognis. The system is based on the principle that perspiration caused by exertion in sports is released into textiles, which then causes a bad odour. However, with fibres that are finished with cyclofresh this does not happen: miniscule nano particles work like tiny cups, enclosing the organic components in the perspiration that cause the smell. During machine wash, the “guest” molecules are released and discarded, leaving the cups free for the next wear.

“We believe absolutely in cyclofresh technology as an additional benefit to the consumer, and with this innovative commitment we are one of a very small group of international sports brands to offer cyclofresh in the high-function area,” Thomas Laitsch, Global Business Manager for Esprit Sports, said in a statement. An added bonus is that the cyclofresh is not detectable on the materials and feel comfortable on the skin.

www.esprit.com
10 February 2006

Esprit employs Geac to grow business

Apparel brand Esprit has employed Geac's Product Lifecycle Management solution software, which it claims has fuelled growth plans and development capability. The software will be of utmost importance to the efficiency of the company's sourcing office in Hong Kong. Esprit operates 631 directly managed retail stores, 766 partnership stores and more than 8,900 wholesale outlets in over 40 countries.

“Our international scope means we are continually looking to move into new markets, which in turn creates a need for agility and supply chains that can get our brand into new territories quickly and without complication,” said COO Dirk Seifert. “The QuestPLM solution supports a great deal of Esprit's operations and their move to open licensing is indicative of their large commitment to the system,” said Tom Van Soest, international sales manager for Geac's Run Time operations.

www.esprit.com
6 December 2005

Esprit increases garment sourcing from India

Leading fashion label Esprit has announced that it will step up garment sourcing from India.COO Thomas Johannes Grote said that the company planned for a new store in partnership with the Birla Group company Madura Garments, and added that sourcing from India would naturally increase.

Although China and Taiwan were still the biggest source of products for Esprit, Grote said that the company already sourced products like shirts and trousers from India. Esprit is increasing its efforts to penetrate the Indian market, with the partnership with Madura garments marking a beginning to that effort. Stores have already been launched in Mumbai and Bangalore. Grote told the Economic Times that India would become “one of the most important markets” for Esprit within the next 10 to 12 years.

www.esprit.com
28 November 2005

Esprit struggles in US amidst resignations

Fashion chain Esprit is faced with difficult times, specifically in its US operations. Key department stores have discontinued sale of the brand, a number of licensing agreements have been put on hold and the brand will stop US distribution of Collection women's suits and career apparel, as well as the entire men's wear line. Furthermore, three executives have recently resigned. Carmine Porcelli, director of Esprit US, Jack Schwefel, executive vice president of North American retail, and Derong Yang, global image director.

Having recently reintroduced the brand in the US after an absence of 15 years, Esprit is facing up to the fact that brand recognition is not what it used to be and changes have to be made. Projected sales are momentarily 30 to 75 percent lower than had been anticipated, a source told WWD. The same source also said that roughly 20 Esprit employees based in the US would be layed off this week. This claim was, however, denied by president of Esprit North America, Andreas Adenauer.

Adenauer said that the company is learning what works in the US and what does not, and is involved in a structural reorganisation which will allow it to build brand recognition in the US.

“Some of our retail stores are underplanned,” said Adenauer. “We overdid the division mix from baby to sport in both women's and men's. We overstretched the consumer. But we're learning and we're going on, not aggressively, but wisely. We are definitely perceived as a brand here, and we're well-known, but we're not a destination. We have to focus on triple-A locations in the future, like our shop in SoHo or the Garden State Plaza Mall. At these locations, we can build the brand and go from there.”

At this moment, Nordstrom is the only major store to carry Esprit. Dillard's, Macy's East, Macy's West and Marshall Field's have all received their last wholesale shipments. Adenauer maintains that the decision to wholesale solely to Nordstrom's is a “win-win” situation for both the brand and the specialty store. “Nordstrom is really taking care of our brand and our image. It's like a marriage and we want to strengthen it and support it. It's a success story,” he said.

www.esprit.com
3 October 2005

Esprit revises US strategy

The Hong Kong based fashion retailer Esprit Holdings has announced its intention to revise its US strategy, confessing that it had misjudged its popularity there. “I have overestimated our brand power in America ,” said chief executive Heinz Krogner. “Sixty percent of the women knew our brand, but they didn't see any relevance. We have made mistakes.”

Although founded in the US in the 1960s, Esprit exited that market only to return to it a few years ago, spurred on by increased competition in Europe . It opened hundreds of concessions in department stores in the US , as well as a few retail outlets. However, US customers had long since lost familiarity with the brand. Poor locations of its outlet stores also contributed to a less than stellar performance.

Krogner said that from next year, the company would only sell casual and junior women's wear and accessories in the US . He announced this plan after reporting a loss of approximately $15 million (£8.22 million) in the year ended 30 June. Wholesale contracts would be renegotiated and Esprit would only open outlet stores in prime locations on the “north-west corridor” between Boston and Washington .

The US failure had little impact, however, on the group's overall performance. Due to significant growth in Europe and Germany especially, the company's turnover soared 26 percent to $2.6 billion, while net profit leapt 67 percent to $425 million. German sales, which represent 48 percent of total sales, rose 21 percent, while the rest of Europe climbed 39 percent. Asia , which represents less than 10 percent of the group's total sales, made a profit for the first time in years with a 21 percent increase in sales.

The Group has a target of approximately 20 percent sales growth for 2005/6. It intends to add at least 110 retail stores and 1,400 wholesale outlets globally this year. Esprit also said that its net profit margin had increased four percentage points, reaching a record 16.2 percent last year. It hopes to achieve 15 percent this year.

www.esprit.com
14 September 2005

Esprit Academy

Lifestyle brand Esprit is climbing its way back into the fashion arena, with the launch of its Esprit Academy - a collaboration with the London College of Fashion. Young and ermerging designers were approached by the American/German conglomerate to interpret the essence of Esprit by creating a cutting edge fashion line around an existing collection.

19 entries of up and coming talent showed their designs at a catwalk presentation held at The Royal Academy of Arts, modelled by Alek Wek, a former student of the college. The winning entry showed a colonial inspired range and will see their designs produced and sold through Esprit stores worldwide as a limited edition line.

The brand, which in recent years has struggled to stay ahead of high street fashion, made its mark in the eighties with its stencil effect logo and clever advertising. This is Esprit's first step in supporting new fashion design talent and the start of a long term campaign to take the Esprit Academy global.

www.esprit.com
29 June 2005

Esprit Announces New Chief Operation Officers

Esprit has announced that Thomas Grote and Jerome Griffith have been appointed as Joint Chief Operating Officers of the Esprit brand. Esprit currently operates around 570 directly managed retail stores and distribute through over 6,000 wholesale points-of-sales internationally, occupying over 400,000 square meters of retail space in more than 40 countries. Both Grote and Griffith will continue to report to Heinz Krogner, Deputy Chairman and Group CEO.

www.esprit.com
9 July 2004

Esprit to Push Wholesale

Esprit is launching a wholesale operation in the UK this summer as part of a bid to grow its distribution following the closure of its Bluewater store.

The wholesale collection, on sale from August 1st, will include women's men's and children's wear as accessories. It will be targeted at department stores and major independent retailers. Esprit is also hoping to build a network of franchises in the UK.

The company is setting up a UK head-office and showroom in Clerkenwell, Central London. Esprit is aspiring to have 500 wholesale accounts and franchise stores across the UK in the next two years. The brand is already sold in 35 John Lewis stores through the German wholesale operation.

Two weeks ago Esprit announced that it is closing its store in the Bluewater shopping centre in Kent, leaving Regent Street flagship in London as its only store.

www.esprit.com
10 July 2003

Esprit to Close Bluewater Store

Hong Kong-based fashion conglomerate Esprit Holdings Ltd has confirmed it will close one of its two Esprit stores in the UK. The shop in Bluewater, trading since September 2001, will be closed due to "distance problems", as the London location is in a prime area on Regent Street.

Both stores have been experiencing trading problems and struggling with turnover, similar to the trading difficulties in Britain five years ago. With Zara and Mango as their high street competitors, Esprit has been failing to meet the consumer demands. Esprit plans to restructure its UK business, focussing on wholesale and franchise operations. A new UK headquarters is to be opened in Clerkenwell in the near future.

26 June 2003
www.esprit.com

Esprit set to launch edc Men

Esprit Europe GmbH, the European division of Hong Kong-based fashion retailer Esprit Holdings Ltd, on Monday said it will add menswear to its young fashion line edc as the company continues to develop its product range.

At the end of end of 2002, Esprit announced plans to launch the edc women's concept in stores worldwide and to enter the men's sportswear sector with Esprit Sports Men. According to sales and marketing director Thomas Grote, the company was currently building a design team for edc Men, which is scheduled to start retail in August 2004.

In the first year, the collection is expected to generate sales of 20 million EUR and hit the 100m mark within five years, Esprit stated. Edc, which was launched in 1999, this year will increase sales by fourty per cent to 140 million EUR, Mr Grote said. Esprit presently operates three edc stores and will open a further edc franchise stores in the near future.

www.esprit.com
February 26, 2003

Good results Esprit

Esprit Holdings Limited announced interim results for the six months ended December 31, 2002. Turnover grew by 31 per cent over last year, reaching over 730 million USD for the half year. Net profit grew to 67, 2 million USD, which is an impressive year-on-year growth of 44 per cent.

At a press conference in Hong Kong on Wednesday, Heinz Krogner, Esprit's Deputy Chairman and Chief Executive Officer said, "It is my great pleasure to report an impressive set of interim results as we are in the midst of achieving our tenth consecutive year of growth. All lines of business and all regions with operations reported turnover growth and the Group's profitability also improved in this six months period."

www.esprit.com
February 14, 2003

Esprit launches new sports collection

Hong Kong-based fashion company Esprit Holdings will start with "Esprit Sports Men" in an attempt to gain market share in the men's sportswear sector. The collection will be launched in September next year. The Esprit Sports Men-collection will include 100 styles focusing on snowwear, running, racket sports and fitness. The line can be ordered six times a year and will be delivered every month. According to executive director Thomas Grothe, the menswear sector offers Esprit "the highest growth potential”.

The company, said it was also mulling a retail chain offering Esprit Sports Women and the new Esprit Sports Men, but stressed that the decision was “not definite yet”.

December 6, 2002
www.esprit.com

Forceful Esprit expansion in North America

Fashion company Esprit Holdings that is based in Hong Kong announced it will aggressively expand in North America after posting a 61% rise in net profit to 122 million euro for the year ended June 30 2002. The company's strong growth was due to its "continued good sales performance" as well as a corporate tax cut in Germany where it generates most of its profit.

Starting from spring next year Esprit will start selling merchandise in about 270 North American department stores. The company plans to boost sales in the US to 100 million dollar in one year's time. Presently, business in North America contributes only a small share of sales. Esprit Holdings acquired the worldwide Esprit trademark rights in the US and the Caribbean in April this year.

Total turnover rose 14% to 1.2 billion euro. Wholesale revenues (57% of total turnover) rose 15% and retail sales increased by 12%. Esprit plans to invest more than 50 million euro in the opening of 18 stores on the European continent. Despite the difficulties the brand is presently experiencing in the UK, up to six new stores will have opened in London by June 2004.

Thanks to a corporate tax cut in Germany the Düsseldorf-based Esprit Europe saw profits soar 40%. In Hong Kong though the company experienced tough times. In spite of a 30% sales increase in Hong Kong retail an operating loss was posted because of discounts, refurbishing costs and royalties to sister companies.
09-19-02

www.esprit.com