Managing Director’s Report

On behalf of the Board, I am pleased to report another very solid year of customer focused initiatives by the Company throughout the year.

The period involved significant challenges for the retail sector as consumer spending slowed, savings rates increased, deflation impacted sales and margin levels, and natural disasters caused disruptions. Despite this background Empire Apparel Group once again demonstrated the resilience and sustainability of its business model with sales growth well above market trends for its brands and with all retail partners.

In this highly unpredictable economic environment, Empire Apparel Group has delivered some amazing results. 49% Sales growth for the Mone11 menswear youth brand, six new retail partners joining our business, and the continued and growing success of our denim division.

We continued to strengthen our medium to long term position during the year through investment in our technology and teams on the ground. The continued investment in our core businesses, sourcing solutions and brand management, will enable us to respond faster to customers with greater flexibility in order to meet their needs.

The Board acknowledges our team members whose dedication and commitment to our customers delivered outstanding results for our partners. In the coming year, we will continue to grow our pool of talent and provide new development opportunities for the many we employ around the globe.

Given the current difficult conditions, the Board and management remain confident about the outlook for Empire Apparel Group given our continued investment in people, technology and R&D. The Board can assure you that we are well positioned to deliver sustained growth for your business through innovation, differentiation and speed to market.

Yours Sincerely,

Charles Baker
Managing Director