We continue to be very cautious
about the current retail environment. However, we remain confident that
the value inherent in our long-standing brands, such as Hickey Freeman and Hart
Schaffner Marx, augmented by the increasing importance of the upscale brands we
have acquired through acquisitions, will result in long-term revenue and
earnings growth and increased shareholder value.
Our strategies for driving both sales and earnings are to:
1. Maintain an ongoing focus on growing our luxury/upscale
product mix through the expansion of existing brands and through acquisitions in
womenswear and men's sportswear that meet our clearly defined financial and
other criteria.
2. Adapt a multi-channel (wholesale, regular
retail, outlet, web, catalog) and multi-product growth strategy for the Hickey
Freeman, Hart Schaffner Marx and Bobby Jones brands by prudently increasing
retail and outlet stores and by adding additional product categories.
3. Reduce dependence on moderate priced tailored
clothing by aggressively eliminating unprofitable licensed brands.
4. Focus on geographical expansion in a manner
that continues to position Hartmarx as an upscale global apparel company.
5. Continue to manage debt levels prudently,
utilizing excess cash flow (after acquisitions) to buy back stock if the market
conditions are favorable.
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