Chairman and Group CEO of Esprit Heinz Krogner said he will stay on the board for a longer time, due to the global financial crisis.

Speaking to reporters yesterday after the company's annual general meeting,Krogner said the company should strengthen its management team amid the difficult time.

"I have to be active again in the business," Krogner said, stressing that he will step down shortly as the executive director of the board. "The younger generation has to take over," he added.

Esprit, which sells casual wear in more than 40 countries and regions, has recently hired Chew Fook Aun, chief financial officer (CFO) and executive director at the Link Management, as the new CFO. Chew will take over from June 1, 2009 to succeed John Poon, who resigned as Esprit's deputy chairman and CFO in July.

Commenting on the appointment of the new CFO, Krogner said Chew will be able to provide good support to the company's growth.

"We are very happy to have a new CFO living in Hong Kong, but not in Europe," Krogner said.

The fashion retailer has also named Lars Radoor Soerensen, who was the senior vice-president of global logistics and operations at Adidas AG, as the company's chief operating officer on Oct 1.

Krogner, however, declined to make any comment on when he would leave the board, saying that he cannot forecast how long the turmoil will last.

"There is no specific schedule for his retirement," Deputy Chairman Paul Cheng added.

Krogner admitted that the overall business situation is difficult, especially for Esprit, the leader in the industry.

"It is more important to stay relatively strong in relation to our competitors," Krogner said.

Asked if the company will buy back its shares during the market downturn, Krogner said the retailer has chosen to pay dividend to their shareholders instead.

"Buying back the shares won't affect the share prices a lot, because (price of) everything is falling down," he said, adding that the majority shareholders have favored dividend distribution.

The company will pay a dividend of HK$3.25 per share to its shareholders, including a special dividend of HK$2.1 to mark its 40th anniversary. The dividend will account for 80 percent of its earnings per share.

Shares of Esprit ended yesterday's trading at HK$45.95, falling HK$4.15, or 8.28 percent.

(HK Edition 12/12/2008 page2)