Esprit Holdings expects profit to more than double
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Fashion group Esprit Holdings expects to more than double its net profit for its financial year to the end of June, it has announced in a profit estimate for The Stock Exchange of Hong Kong.
In a preliminary review of its unaudited consolidated management accounts, the company expects a net profit in the range of about HK$50 million (US$6 million) to $80 million, compared to the previous year’s $21 million.
Company secretary Florence Ng Wai Yin says the overall development is attributable to two main factors:
(i) an improvement of the financial performance of the group’s underlying business (excluding exceptional items), estimated to be about $370 million to $400 million; and
(ii) less favourable taxation credit, which has been reduced to roughly between $156 million to $186 million compared to last year’s $606 million.
The company expects to release its final results announcement next month.
Questions & Answers
Q.What is the expected net profit range for Esprit Holdings for the financial year ending in June?
What is the expected net profit range for Esprit Holdings for the financial year ending in June?
The company expects a net profit in the range of approximately HK$50 million to $80 million (US$6 million). This is a significant increase from the previous year's $21 million.
Q.What are the primary reasons for the expected profit increase according to the company?
What are the primary reasons for the expected profit increase according to the company?
The main factors are an improvement in the underlying business's financial performance, estimated at $370 million to $400 million, and a less favourable taxation credit compared to the previous year.
Q.How does this year's expected taxation credit compare to the previous year's?
How does this year's expected taxation credit compare to the previous year's?
The taxation credit for the current year is estimated to be roughly between $156 million to $186 million. This is significantly reduced from last year's $606 million credit.
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