• Esprit expects to record a loss before interest and taxation in the range of HK$2.17bn-HK$2.27bn (US$276.6m-US$289.3m) for the year ended 30 June.
  • This compares to a loss of HK$102m in the same period last year.
Esprit said it expects to record a loss before interest and taxation in the range of HK$2.17bn-HK$2.27bn (US$276.6m-US$289.3m) for the year ended 30 June

Esprit said it expects to record a loss before interest and taxation in the range of HK$2.17bn-HK$2.27bn (US$276.6m-US$289.3m) for the year ended 30 June

Hong-Kong-based fashion brand Esprit has warned it expects to record a loss for the full financial year on the back of a "significant" decline of its business in China and worse than expected group sales.

In a statement simply titled 'profit warning' the company said it expects to record a loss before interest and taxation in the range of HK$2.17bn-HK$2.27bn (US$276.6m-US$289.3m) for the year ended 30 June. This compares to a loss of HK$102m in the same period last year.

Esprit said the anticipated loss is primarily due to the "significant" decline of its business in China in recent years, a higher than expected decline in the group's revenue, primarily due to less traffic through its brick and mortar stores, and the decision to divest its loss-making operations in Australia and New Zealand - a move that will see it incur one-off costs to the tune of HK$180m-HK$200m.

Announced last month, the decision will see Esprit close 67 directly-managed retail stores, including 38 concession counters in department stores and 13 off-price outlets. Looking ahead, the company said it will be concentrating its efforts and resources on developing other markets in Asia to drive profitable growth.

Earlier this month, former New Look chief Anders Kristiansen assumed the role of CEO at Esprit, succeeding Jose Martinez who resigned for personal reasons, having expressed a wish to pursue other interests, according to the firm.