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Esprit’s profit up threefold this year

Fashion group Esprit’s full-year profit saw a threefold rise. The Europe-focused clothing retailer is undergoing a multi-year revamp that includes store closures, trimming operating costs, price adjustments, new return policies, and technology and distribution upgrades.

The company expects controlled retail space to shrink by single digits in percentage terms in the new financial year, while revenue is seen falling marginally.

Growth is expected only progressively as the group still faces a downsizing process in its wholesale and retail space as loss-making retail stores still need to be closed. However, the retailer forecasts an improvement in gross profit margin as it continues to cut down on discounts and promotions. Operating expenses are expected to come down by single digits in percentage terms. Shares of Esprit have fallen more than 20 per cent so far this year.

Esprit earns the bulk of its revenues in Europe. Its largest market is Germany. It feels the operating environment appears challenging amid volatile financial markets and economic uncertainty that might dampen consumer sentiment. The company remains confident of heading in the right direction and is laying the necessary foundation to restore competitiveness and long term growth. Esprit offers high quality fashion for men, women and children as well as the latest fashion accessories and furnishings.