Espirit announced the company’s second half earnings and needless to say things are looking up. Profits were up 13 percent after the Hong-Kong based retailer opened up more stores. Most of Espirit sales are from Europe where the company derives four-fifths of revenue. Espirit was looking for an attractive retail takeover target but the CEO, Heinz Krogner, put the brakes on as a result of the global economic slowdown.
Espirit makes nearly half of its revenue in the German market. With consumer confidence in that country being at its lowest point in five years and inflation up 3.4 percent in June, disposable incomes were being affected. Taking all the economic indicators into effect, Espirit’s CEO was proceeding cautiously with expansion plans. Krogner originally had his sights set on Donna Karan international which was bought in 2001 by LVMH for $243 million.
Online: Bloomberg article