NEW YORK and POZNAN, Poland, March 1, 2010 (GLOBE NEWSWIRE) -- Sunset Suits Holdings, Inc. (OTCBB:SNSX), a leading designer and retailer of high quality menswear, today provided financial guidance for 2010 and 2011 and offered an overview of the business. The Company expects to achieve net income of at least USD $2.0 million, or $0.16 per share, for 2010 and USD $3.4 million, or $0.27 per share, for 2011.
Mr. Miroslaw Kranik, Chief Executive Officer of Sunset Suits, commented, "Our decision to provide guidance follows our recent listing on the Over-the-Counter Bulletin Board and implementation of some exciting initiatives that are expected to further strengthen our position in the European marketplace, stimulate demand in a difficult economy and enhance shareholder value. Challenging times require flexibility and the ability to detect, embrace and adapt to changes that are taking place in the marketplace. The opportunities that lie ahead are vast and we have made some company-altering strategic decisions that should bode well for the future of Sunset Suits and our shareholders."
Mr. Kranik continued, "By way of background, Sunset Suits was founded in 1987 under the Men's Fashion name and we have built a solid reputation for quality and service over the years. Validation of this achievement is evidenced by our market leadership, as well as various awards and favorable third-party consumer survey results. We design and sell men's suits, sports coats, slacks, dress shirts and ties under the Sunset Suits brand through our network of 85 specialty stores in Poland, 3 stores in Latvia, 8 stores in the Czech Republic and 5 stores in Lithuania. We cater to the 18 to 35 year old age group, which is the fastest growing demographic in our region."
"Although the global economy has been severely tested over the past couple of years, and the retail sector has been particularly hard hit, we have maintained our position as the second largest formal menswear company in Poland for over five years in a row. Nevertheless, price, now more than ever, is a determining factor in consumer disposable income purchases in Poland and we plan to capitalize on this trend to increase demand for our merchandise. Our first strategic shift at Sunset Suits is to reduce our price points. Based on our market research, we believe this will accomplish two things. First, it will bring those potential customers who have a high regard for our brand but who historically could not afford our merchandise to step up to Sunset Suits. Second, for those high end consumers of luxury brands feeling the macro economic effects and who are seeking the fine quality they are accustomed to but at better prices, Sunset Suits will be a good fit. While it is too early to assess the full impact of this strategy change, we are confident in the new direction we are taking and believe that the coming quarters will demonstrate its success."
"In addition to initiatives pertaining to the revenue side of our business, we are in the process of improving operations and increasing profit margins. Specifically, the largest operating cost for our retail stores is rent, and we are working to reduce excess floor space per store in our larger shopping mall retail locations, while increasing revenue per square meter by focusing on the most popular and highest turnover items. Consistent with this strategy, we plan to increase the number of small retail boutiques, which carry much of the same merchandise as our larger locations within a smaller footprint. We will supplement our own products with third party apparel and accessories, such as shoes, that will be co-branded under the Sunset Suits label. We are also taking important steps to reduce our manufacturing costs and plan to expand on this strategy in the coming months. In the meantime, we will continue to build upon our strong brand, core design expertise and fashion forecasting capabilities, while expanding our retail presence in Poland and surrounding areas. Overall, we believe these steps will serve to dramatically increase the profitability of Sunset Suits in the months and years ahead. For this reason, we are very confident in our ability to achieve the aforementioned net income targets. Moreover, we believe that as we execute our strategy of lowering price points, increasing turnover, and reducing operating costs, there is significant upside potential for our shareholders."
About Sunset Suits Holdings
Sunset Suits is a designer and retailer of high quality menswear based in Poland. The company's merchandise includes suits, sport coats, slacks, dress shirts and ties. Sunset Suits distributes its clothing primarily through its sales outlets. The company operates 85 domestic retail stores in Poland, 3 stores in Latvia, 8 stores in the Czech Republic, and 5 stores in Lithuania. Sunset Suits targets men in the 18 to 35 year-old age group, one of the most rapidly developing demographics in the industry.
This press release may contain forward looking statements. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. In some cases, forward-looking statements contain terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "would" and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect the Company's current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, readers should not place undue reliance on these forward-looking statements. These forward-looking statements include, among other things, statements relating to: general economic conditions; expectations regarding the Company's ability to maintain and grow its business; expectations regarding the continued growth of the Polish clothing industry; beliefs regarding the competitiveness of the Company's products; expectations with respect to increased revenue growth and the ability to achieve increased profitability; future business development, results of operations and financial condition; and competition from other apparel companies. Also, forward-looking statements represent the Company's estimates and assumptions only as of the date of this press release and actual future results may be materially different from what the Company expects. Readers are encouraged to review the "Risks Factors" section in the Company's Registration Statement on Form S-1/A filed on January 12, 2010. The Company assumes no obligation, and does not intend, to update any forward-looking statements, except as required by law.