Grace Cao

Monday, September 05, 2011

Mainland menswear maker Evergreen International (0238) hopes to boost sales of its high- end products by attracting more cash-rich customers.
The Guangdong-based firm has 30,000 VIP clients - those who spent at least 5,000 yuan (HK$6,100) on their first visit.

Such customers accounted for 40 percent of turnover in the first half at outlets fully owned by the company.

Total revenue jumped by 33.2 percent year on year to 322 million yuan in the first six months from a year ago as same-store sales for its two primary brands, Testantin and V.E. Delure, grew 35 percent and 36.3 percent, respectively.

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"We will add more self-operated stores of high-end brands in first and second-tier cities,"chairman Chan Yuk-ming told The Standard. "As for the younger brand, we will use distributors in third and fourth-tier cities."

The firm has 357 stores, mostly in the mainland. It aims to open 120 outlets in the second half.

Rental costs - accounting for 25 percent of sales - dragged the operating profit margin down 6.9 percentage points to 29.2 percent in the first half from a year back.

Price tags rose by an average 10 percent to offset rising raw material costs.

Shares of Evergreen International rose 0.9 percent to HK$2.35 on Friday.