Esprit set to achieve five-year profit milestone
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The Hong Kong-listed fashion retailer says it estimates its profit attributable to shareholders for the year to Dec. 31 to reach approximately $47 million. This would mark the company’s first full-year net profit since 2017.
Esprit has changed its financial year, so comparisons are not directly comparable. But for the six months to Dec. 31, 2020, the company posted a loss of $53 million, and for the 12 months to Jun. 30, 2020, it lost $503.2 million.
In a stock-exchange filing, Chairman Christin Chiu attributed the profit turnaround to increased sales – especially online – together with a higher gross profit margin, and improved cost controls and inventory management.
Questions & Answers
Q.What is the estimated profit Esprit expects to report for the financial year ending December 31st?
What is the estimated profit Esprit expects to report for the financial year ending December 31st?
Esprit estimates its profit attributable to shareholders for the year to December 31st will be approximately $47 million. This marks the company's first full-year net profit since 2017, representing a significant turnaround for the fashion retailer.
Q.What factors has the Chairman identified as contributing to Esprit's profit turnaround?
What factors has the Chairman identified as contributing to Esprit's profit turnaround?
Chairman Christin Chiu attributed the profit turnaround to increased sales, particularly online, along with a higher gross profit margin. Improved cost controls and better inventory management also played a crucial role in the company's performance.
Q.How do Esprit's estimated profits compare to its financial performance in recent previous periods?
How do Esprit's estimated profits compare to its financial performance in recent previous periods?
For the six months to December 31st, 2020, Esprit reported a loss of $53 million. The company also lost $503.2 million for the 12 months to June 30th, 2020, highlighting a significant improvement in its financial health.
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