Esprit expects to break even on net income level this fiscal

Based on its preliminary review of its unaudited consolidated management accounts for the full financial year ended June 30, 2016, Esprit management currently expects the Group to record a break even in terms of net income for FY15/16.

The company said that this financial performance of the Group results from the combination of three major elements. The financial result of the Group’s underlying operations better than the loss before interest and tax of 736.8 million Hong Kong dollars (95 million dollars) expected by market consensus. Exceptional non-recurring expenses, related to the recent acceleration of cost restructuring measures, like staff reduction to reduce overhead costs, license agreement with Groupe Zannier to develop the Esprit Kids business, agreement to sublet store space on 34th Street, New York and decision to close certain loss-making stores in China, Hong Kong and Macau.

Exceptional net gains of approximately 1,337 million Hong Kong dollars (172.4 million dollars) include net gain of approximately 725 million Hong Kong dollars (93.4 million dollars) from the sale of the Hong Kong office premises, write-back of tax provisions of 409 million Hong Kong dollars (52.7 million dollars) and net taxation credit of approximately 203 million Hong Kong dollars (26.1 million dollars).

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