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H1 loss of Esprit Holdings widens due to brand weakness

Fashion group Esprit Holdings recently posted a bigger loss for the first half amid changes in consumer behavior, price competition and reduced customer traffic across its distribution channels due to weakness of its brand.

The Europe-focused clothing retailer reported a net loss of HK$1.77 billion ($2.25 million) for the six months ended December, including a HK$924 million ($118 million) loss on provision for store closures and leases. That compared with a net loss of HK$954 million ($122 million) in the year-ago period. Revenue slid to HK$6.77 billion from HK$8.04 billion.

Esprit plans to cut about 40 per cent of its non-store jobs and reduce the number of products it sells in stores as it restructures in the wake of tough competition from online and fast-fashion retailers. The apparel group would also shut loss-making stores, restructure cost base and improve products offering, while time would be needed to draw customers back into its stores. The group expects its revenue to further decline in the next two financial years due to closure of loss-making stores.

 

 
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