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Esprit group turnover declines 5.5 percent in H1

By FashionUnited

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REPORT_ Announcing its interim financial results for the six months ended 31 December 2013, Espri

said that its group turnover amounted to 12,810 million Hong Kong dollars (1,651.7 million dollars), representing a decline of 5.5 percent year-on-year and 9.3 percent in local currency, which was in line with a reduction in retail and wholesale space.

Gross profit margin decreased by 1.4 percentage points year-on-year to 49.6 percent. The group’s Board of Directors has declared an interim dividend for the six months ended 31 December 2013 of 0.03 Hong Kong dollars per share.

Commenting on the group’s reported earnings, Thomas Tang, the Group Chief Financial Officer of Esprit, said, “It is through the combined and committed efforts of the management team to reduce cost that we achieved over 1 billion Hong Kong dollars (0.1 billion dollars) in savings in the first half of the financial year, which enabled the group to return to profitability.”

Management priorities for the remainder of the financial year will continue to focus on stabilizing the group’s business performance, working towards adopting a faster and more efficient vertically integrated business model to regain competitiveness and enhancing the appeal of our products. In terms of outlook, Esprit’s financial performance for the second half of the financial year remains uncertain as the group having head offices in Hong Kong and Germany, undergoes significant changes to its business model. However, the Group’s FY13/14 full year guidance remains unchanged.

According to Raymond Or, Chairman of Esprit, “The board is pleased to see improvements in the group’s business and we are in full support of the work carried out by the management. Going forward, we continue to face many challenges and uncertainties but I am confident that with the dedicated and focused efforts of the management, we will be able to regain competitiveness and establish a solid platform for long term growth.”

Esprit