Esprit, the renowned clothing and apparel manufacturer, has witnessed another year of loss, but it’s confident that its new multi-strategic plan will help the company recover soon.
The group sales for the year ending 30 June were HK $ 12.9 billion, down from HK $ 15.5 billion during the same period previous year. With fewer stores, sales were down in all its markets.
Also to note is that Esprit clocked a loss attributable to shareholders of HK $ 2.1 billion, slightly better than last year’s HK $ 2.5 billion.
However, the company is optimistic that its multi-strategic plan will enable to overcome its losses by enhancing the product, right sizing its store network and restructuring the behind-the-scenes operations.
Commenting on the same, Dr. Raymond Or, Executive Chairman, Esprit, said “The plan started taking effect only in the second half of the year. This improvement in performance was majorly due to our proactive and decisive cost control initiatives highlighted by actions to eliminate loss-making stores as well as bold measures to right-size the organisation and our global distribution network, including downsizing of corporate offices so as to achieve savings across all key cost lines.”
Dr. Or said that these initiatives helped saving in regular operating expenses of HK $ 1.7 million or 16.6 per cent in local currency terms; thus we are well on track to achieve the targeted annualised expenses savings of HK $ 2 billion over 2 years from the 2017/18 level.
Despite its last few years being bad, Esprit is one of the few fashion retailers that is debt free, which has helped the brand survive amidst all challenges.