Esprit 2011 Earnings Down 74%


Fashion retailer Esprit Holdings (0330.HK) recorded a 74.07 percent year-on-year drop in net profit for the six months ended December 31, 2011 to HK$555 million on rising procurement costs, inclement weather, and the European debt crisis, reports, citing a company filing.

Revenue fell 5.6 percent year-on-year to HK$16.7 billion, while operating profit plunged 100 percent to HK$787 million.

Though the company had to delay the opening of new outlets due to rising leasing costs, it still launched 60 outlets with retail area of more than 16,000 square meters.

Based on research into consumer behavior and market segment analysis, Kunming Machine Tool will focus on the German, French, and Chinese markets.

It plans to renew leases for 50,000 square meters of wholesale space from the second half of 2012.

It was reported that Esprit plans to reduce the number of unprofitable outlets.

The company announced interim cash dividends of HK$0.26 per share held, and the total amount of dividends to be paid out will hit HK$336 million.


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