- Prachi Singh |
Based on its preliminary review of the unaudited consolidated management accounts of the company and its subsidiaries, for the six months ended December 31, 2014, Esprit expects to record a net profit between 40 million Hong Kong dollars to 50 million Hong Kong dollars (5 to 6.4 million dollars) for the period under review, as compared to a net profit of 95 million Hong Kong dollars (12.2 million dollars) for the corresponding period in the last financial year.
The group has attributed the lower net profit expectation to more than expected decrease in turnover due to prolonged unusually warm weather in Europe for majority part of the period, resulting in much lower than expected sales of Autumn/Winter products; and special return agreements in China to address aged inventory in the wholesale channel, which although completed in the first quarter, also impacted top line performance.
The Spring/Summer 2015 collections would be the first one to have entirely developed under the new business model, implemented at the beginning of the financial year. The interim results announcement of the company for the six months ended December 31, 2014 is expected to be released in February 2015.