"Start on the basis that we would like to acquire an expensive American subsidiary," Esprit chairman and chief executive Heinz Krogner said in an interview with Focus Money.
"But Donna Karan is not for sale and Ralph Lauren is not a good fit for us. We are concentrating on European fashion groups."
Hong Kong-based Esprit, which derives nearly half of its sales from Germany, has been attempting to acquire high-end apparel firms for the past couple of years.
Analysts said the major stumbling block was that the fashion manufacturer and retailer has had to compete against private equity funds, therefore driving acquisition prices sky-high. In a previous meeting with analysts, the company said a major acquisition was needed to bring synergy from top designers to help perfect Esprit's product design.
Meanwhile, Esprit is continuing to work on boosting its organic growth. Earlier this year, it announced plans to open more than 400 stores worldwide over the next three years, with annual investment of up to HK$1.5 billion to develop the new outlets.
Next spring, Esprit is looking to introduce a new product line, "de corp," to target young consumers in the 17-to- 25 age bracket.
Esprit shares closed yesterday at HK$119.80, up 3.7 percent.
