HONG KONG: Esprit transformation plans remain "on track"
- H1 profit slumped 73% to HKD555m (US$71.6m)
- Revenue fell 5.6% to HKD16.6bn
- Operating margin above guidance at 4.7%
Fashion retailer Esprit today (23 February) reported a sharp decline in half-year net income as the struggling retailer reassured shareholders that turnaround plans remain on-track.
The company said profit slumped 73% to HKD555m (US$71.6m) in the six months to 31 December, from HKD2.1bn in the same period last year.
Revenue fell 5.6% to HKD16.6bn. But the company said its operating margin of 4.7% was well above the full-year operating margin guidance of 1-2%.
Last September Esprit unveiled plans to revive its brand and close unprofitable stores, and it now says it is "pleased and confident with the progress made so far".
It added that over half of the 80 planned store closures have been completed, with the remainder in final negotiations.
When it announced the transformation plan, the company also said it would look to divest its North American operations. But it has now decided to wind down the business rather than selling it, as it is "not willing to compromise on brand positioning and distribution channels".
The wind-down of the North American stores is expected to be finalised by 31 March, and will involve the closure of 41 full-price retail stores and 53 outlets.
Featured reports from just-style's research store this week include profiles of US lingerie retailer Victoria's Secret and fashion retailer Esprit, a look at the footwear markets in Indonesia and Taiw...
The stagnating UK economy means that for many retailers and brands, growth will have to come internationally. An event hosted recently by the British Retail Consortium (BRC) outlined the opportunities...
Top stories on just-style this week included a report on clothing brands seeking a forum to raise concerns with the government in Bangladesh, an article on how cooler weather boosted UK clothing sales...
Hong Kong-based clothing brand Esprit has seen its share price soar after announcing the appointment of Jose Manuel Martínez Gutiérrez as CEO and executive director....
Fashion brand and retailer Esprit has announced a number of new management appointments a month after the company, which is in the midst of a transformation plan, reported the departure of its CEO Ron...
Esprit has announced that Hans-Joachim Körber has resigned from the apparel brand as chairman of the board and independent non-executive director, effective 13 June. ...
Esprit suspended the trading of shares in its company today (13 June) after its share price slid following the resignation of its CEO. ...
Leading global brands and retailers including H&M, Levi Strauss, Carrefour and Tesco have backed a three-year programme to clean up production in the Bangladeshi garment industry....
- Nike reaffirms US production commitment
- M&S to launch supply chain human rights policy
- Levi Strauss raises the bar on sustainability
- VF pushes ahead on chemicals management
- Gap and H&M back Myanmar path to labour reform
- Myanmar minimum wage set at US$3.2 per day
- China cotton stockpile auction may shake up market
- Far Eastern to invest $323m in Vietnam textile hub
- US retail landscape "mediocre" over next 5 years
- C&A to add "accurate fit" label to garments