Hong Kong-based fashion group Esprit Holdings Ltd. has announced financial results for the year ended 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.
The retailer expects a marginal drop in its revenue in the next fiscal year as well.
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.
