Esprits group turnover declined 9.9% in the third quarter

Esprit's group turnover declined 9.9% in the third quarter

A shift in the timing of Easter and its mid-season sale to April, coupled with a weaker-than-expected performance in Asia Pacific, led to a 9.9% decline in third-quarter turnover for Hong Kong-listed fashion brand Esprit.

The company, which is in the midst of a restructuring programme, said group turnover came to HKD6.05bn (US$780.3m) for the three months to 31 March, compared to HKD6.72bn in the same period last year.

The decline, Esprit said, was in line with the 10.7% reduction in in total controlled space, which resulted from the rationalisation of wholesale customer base and the closure of unprofitable stores.

Retail turnover fell 6.4% to HKD3.51bn over HKD3.75bn in the prior year. Excluding store closures and stores with onerous contracts, retail turnover dropped by 5.6% year-on-year. Wholesale turnover declined 14.3% to HKD2.50bn from HKD2.91bn.

In February, Esprit swung to a first-half profit, after efforts to overhaul its operations started to gain momentum, but warned the second half of the year "remains uncertain". Despite the good news, analysts had mixed opinions on how long the transformation will take.