Esprit narrows FY loss to HK$2.1b

Business | 18 Sep 2019 5:54 pm

Esprit Holdings (0330) posted today its loss for the year ended June 30 narrowed 16 percent from a year earlier to HK$2.14 billion, with losses per share of HK$1.14 and no final dividend declared.

Revenue during the financial year dropped 16.32 percent to HK$12.93 billion, among which revenue from the Asia Pacific shrank 34.2 percent from a year ago to HK$1.1 billion, while revenue from Hong Kong plunged 41 percent to HK$100 million. Retail sales revenue from Germany, the company's biggest market, decreased 16.2 percent to HK$4.43 billion. The declines in HK dollar terms was higher due to the slight weakness of the Euro against the HK dollar, the company said.

Gross profit margin went down 1.1 percentage points to 50.3 percent mainly due to clearance of inventory in the first half of the year as part of the company's strategy, Esprit said.

The strategic plan of the company is well underway and has already been yielding results contributing to improvements in operational metrics after its launch on November 2018, said Anders Kristiansen, chief executive of Esprit.

The company expects a low-double-digit percentage decline in revenue for the next financial year and aims to achieve a slight improvement increase in gross profit margin mainly through having less discount while maintaining retail price.

Shares of Esprit slid 0.68 percent, or 1 HK cent, to close at HK$1.45.

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