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Esprit Holdings First-Half Earnings Rise 37%

Company says it will look at possible acquisitions as private equity money flowing into takeovers slows down.

Hong Kong-based apparel retailer Esprit Holdings Ltd. on Wednesday reported a 37 percent jump in first-half earnings, along with plans for possible acquisitions.

 

For the six months ended Dec. 31, earnings reached 3.3 billion in Hong Kong dollars (HKD), or $422 million at average exchange rates. Sales for the period grew 27 percent to 18.5 billion HKD, or $2.4 billion. The company said in a statement that results benefited from the appreciation in the euro.

 

“We see the potential weakening of global economic conditions as an opportunity to gain market share, particularly through retail expansion,” the company said in a statement.

 

Company officials told reporters during a press conference that the retailer would be eyeing targets for an acquisition, which follows a slowdown in merger and acquisition activity involving private equity money.