ESPRIT: last full year marks return into the black
RESULTS declared by Esprit for its full year 2013/14 show a return to profit with an EBIT of HKD 361m, equivalent to around EUR 36m. In the preceding full year, the chain had posted a loss of HKD 4.2bn. The leisurewear chain, that also operates a number of stores dedicated mainly to intimate apparel, achieved its move back into the black thanks to a reduction of costs by nearly one third. Sales declined by 9.9 per cent to the equivalent of EUR 2.3bn, which was in line with the around 10 per cent reduction of selling area as a result of store closures. In Europe, wholesale sales slumped by 16 per cent to EUR 850m while retail sales dipped by only 6 per cent.
This is the first step towards a definitive turnaround for the chain that once dominated its market segment in Europe, and could well do so again.