Esprit remains confident despite first-half loss
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A strategic plan is starting to yield results for Esprit, which is buoyant in its outlook despite a first-half loss weighted on by weakened demand in China.
Net loss for the Hong Kong-listed fashion retailer amounted to HKD238m (£22m) for the six months to 31 December, compared to a profit of HKD47m (£4.3m) in the same period the year before.
Esprit introduced a vertically integrated business model in its previous financial year, the same supply chain process used by high street giant Zara. Esprit said this, coupled with cost efficient product development, is enabling it to develop improved products in terms of design, quality and value-for money.
“The performance during the first six months of this financial year gives us confidence that the implementation of our vertical and omnichannel model is an effective basis to turnaround our business,” said CEO Jose Manuel Martinez.
“We remain confident that we are heading in the right direction and are laying the necessary foundation to restore competitiveness and long term growth for Esprit.”
Questions & Answers
Q.What was Esprit's net loss in the first half of the financial year?
What was Esprit's net loss in the first half of the financial year?
Esprit reported a net loss of HKD238m (£22m) for the six months to 31 December. This contrasts with a profit of HKD47m (£4.3m) in the same period the previous year.
Q.What is the new business model Esprit has adopted?
What is the new business model Esprit has adopted?
Esprit introduced a vertically integrated business model in its previous financial year. This is the same supply chain process employed by high street retailer Zara.
Q.What is causing the current losses for Esprit?
What is causing the current losses for Esprit?
The first-half loss is primarily attributed to weakened demand in China. Despite this, Esprit remains buoyant in its outlook and confident in its strategic plan.
Q.How does Esprit believe its new strategy will improve its products?
How does Esprit believe its new strategy will improve its products?
Esprit states the new vertically integrated model and cost-efficient product development enable it to develop improved products. These improvements are in terms of design, quality, and value-for-money.
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