|Esprit books HK$465m loss
Troubled casual wear and accessories retailer Esprit (0330), which has been closing stores in North America, Europe and Asia Pacific to stem the flow of red ink, booked a net loss of HK$465 million for the six months ended December 31, 2012. Revenue dived 18.8 percent to HK$13.5 billion.
The fashion retailer has undertaken what it calls a four-year transformation program.
In the same period a year earlier, Esprit booked earnings of HK$555 million.
Retail sales fell nearly 18 percent to HK$8.10 billion compared with HK$9.8 billion in the comparable period a year earlier, the company said. Sales in China were down 12 percent. China accounted for nearly 10 percent of retail turnover in the six months, clocking up HK$796 million compared with HK$250 million in Hong Kong, representing 3.1 percent of turnover.
Despite closing stores, Esprit has also continued to open more spaces for retailing. Retail selling space grew 2.4 percent to 346,217 sq m.
Wholesale turnover fell more than 20 percent to HK$5.35 billion.
Esprit said it will focus on stabilizing business performance by cutting
costs, tactically activating top line and reducing inventory levels.
Esprit was founded in San Francisco in 1968 and is headquartered in Hong Kong.