Esprit net profit jumps three­fold in FY 2017

Apparel Online - - Retail Current -

Hong Kong-based fashion group Esprit Hold­ings Ltd. has an­nounced fi­nan­cial re­sults for the year end­ing in June 2017. Jose Manuel Martínez, Group Chief Ex­ec­u­tive Of­fi­cer of Esprit said, “FY 2016-17 has been a year of good progress and marks the com­ple­tion of the strate­gic plan that was an­nounced in the year 2013.”

Dur­ing the year un­der re­view, the fashion re­tailer noted a three­fold in­crease in its net profit to HK $ 67 mil­lion from HK $ 21 mil­lion in the 2016 fis­cal year.

The profit is in line with the com­pany’s ex­pec­ta­tions of HK $ 50-80 mil­lion.

How­ever, Esprit recorded a de­cline in its rev­enue from HK $ 17.8 bil­lion last year to HK

$ 15.9 bil­lion this year. The com­pany is con­sid­er­ing to shut its un­der­per­form­ing re­tail stores now. It cur­rently op­er­ates over 900 stores glob­ally.

Esprit, how­ever, has plans in place to im­prove its gross profit mar­gin by cut­ting down on dis­counts and pro­mo­tions. Ad­di­tion­ally, the op­er­at­ing ex­penses are ex­pected to come down next year which will give bet­ter mar­gins to the com­pany.

The re­tailer, op­er­at­ing 900 stores glob­ally, ex­pects a mar­ginal drop in its rev­enue in the next fis­cal year.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.