DGAP-News: KINGHERO AG: Flagship stores contribute to successful growth in Q1 2012
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Quarter Results
KINGHERO AG: Flagship stores contribute to successful growth in Q1
2012
30.05.2012 / 07:58
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Results 3-months 2012
KINGHERO AG: Flagship stores contribute to successful growth in Q1 2012
* Revenues increase by 36.0% to EUR 24.8 million
* EBIT margin of 26.2%
* Flagship Stores already contributing 16.6% to revenues
Munich, 30 May 2012. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion company, continued its success story in the
first quarter 2012. Revenues increased by 36.0% from EUR 18.2 million in Q1
2011 to EUR 24.8 million in Q1 2012. The 65 flagship stores (as of 31 March
2012) generated 16.6% of the revenues (Q1 2011: 4.5%). In the first three
months EBIT amounted to EUR 6.5 million, representing an EBIT margin of
26.2%.
The increased revenues are based on the higher demand for the KINGHERO
fashion products, the strategic pricing of products as well as the
contemporary designs, variety and product mix of KINGHERO. Along with its
brand building strategy KINGHERO introduced more high-quality products into
its product portfolio. This resulted in a further increase of the average
selling price per unit by 25% compared to Q1 2011.
Gross profit grew by 26.6% to EUR 9.8 million (Q1 2011: EUR 7.8 million)
during the first quarter, benefiting from the high margin of flagship store
sales (gross profit margin of 62.7%). Mainly due to the higher raw material
prices from general price increases and also higher quality materials, the
overall gross profit margin decreased from 42.6% to 39.7% compared to the
very good results of the first three months 2011. However, the gross profit
margin is still about 3 percentage points higher than in the full financial
year 2011 (36.5%). Operating profit (EBIT) amounted to EUR 6.5 million,
which represents an increase of 4.9% compared to the first three months of
2011. EBIT was affected by higher selling and distribution expenses as well
as rental expenses and launching costs of the flagship stores.
Promising outlook
As planned KINGHERO launched its new upscale 'AUVADIS' women's wear
collection at the beginning of 2012. Although 'AUVADIS' will only
contribute a small share to group revenues in the beginning, the company is
confident that it should lead to rising average selling prices and should
strengthen the company's brand image.
KINGHERO expects to achieve further revenue growth in 2012 and 2013 by
implementing its growth strategy that is associated with strengthening the
brand building, optimizing product mix, increasing production capacity and
integrating new technologies.
Based on the result of the first three months 2012, KINGHERO anticipates
overall sales of approx. 125 Mio EUR in 2012 and sustainable margins at
previous year's level again.
KINGHERO also plans to take full advantage of the optimistic retail growth
in China by rolling out more flagship stores and further expanding its
distribution network. In 2012, the company pursues the target of opening
approximately 40 flagship stores in tier one, two and three cities. Until
the end of 2012, KINGHERO expects to operate a total of 100 flagship
stores.
For more information on KINGHERO's business and financial development in
the first three months of 2012 please see the interim statement published
on the website www.kinghero.de.
About KINGHERO AG
KINGHERO AG is the German Holding Company of the KINGHERO Group of
companies, mainly active in the Peoples Republic of China (PRC). The Group
is a strongly growing apparel manufacturer and designer, featuring a
leading Chinese fashion brand for the strongly growing urban middle class
in China. The key to the Company's success is a high fashion degree with a
European 'touch and feel' as well as an upscale quality. The high speed of
the design and marketing of new collections ensures a fit to the changing
demands of the growing urban middle class in China. Being in this business
for more than 25 years, the group and its more than 1,000 employees produce
attire for all seasons under the KINGHERO brand. The product portfolio
includes suits, jackets, shirts, pants and sweaters for men and women and
is divided into a business casual range and a general casual range.
For further information please contact:
Kirchhoff Consult AG
Dr. Kay Baden
Phone: +49 (0)40 60 91 86 0
baden(at)kirchhoff.de
KINGHERO AG
Montenstr. 11
80639 Munich
Germany
Phone: +49 (0)89 12 71 13 29
xiaoping.zhao-moll(at)kinghero.de
Disclaimer
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of
KINGHERO AG (the 'Shares') have not been registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
End of Corporate News
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30.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: KINGHERO AG
Gustav-Heinemann-Ring 44
81739 München
Germany
Phone: 089 - 6734 6884
Fax: 089 - 6734 6887
E-mail: contact(at)kinghero.de
Internet: www.kinghero.de
ISIN: DE000A0XFMW8
WKN: A0XFMW
Listed: Freiverkehr in Düsseldorf, Hamburg, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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171963 30.05.2012
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