Esprit to close all its North American stores

High street retailer Esprit is to close all of its branches in the US and Canada. The Hong Kong-based company, which has been struggling to keep market share and stay relevant with its fashion offer, saw its North American sales dwindle to

less than 4 per cent of the group’s turnover.

Esprit reported a 98 per cent fall in net profit for the financial year, which finished in June. The company's chief executive at the time said the brand had “lost its soul”.

According to Bloomberg, Esprit lost HK$1.6 billion ($206 million) in a four-year period, leading to the store closures of the loss-making market.

Esprit is expected to announce its interim results later this month, and Chief Executive Officer Ronald Van der Vis stated the company plans to turn the retailer around by reinvigorating its fashion offer to compete with the leading European high street stores and to revive earnings in the European market. The company also expects to double its sales in China in four years.

Image: Esprit winter 2011 campaign