Esprit has reported a decline in its first-half results, as expected, but the struggling fashion retailer is promising a stronger second half..
The Hong Kong-based company, which has been facing declining sales and profits in recent years, said that its net sales fell by 10.3% to HK$4.9 billion ($628 million) in the six months to December 31..
Gross profit fell by 13.1% to HK$2.2 billion ($282 million), while operating profit plunged by 44.2% to HK$180 million ($23 million)..
Esprit said that the decline in sales was due to a number of factors, including the ongoing Covid-19 pandemic, which has led to store closures and a decline in consumer spending..
The company also said that it has been facing increased competition from online retailers, which has put pressure on its margins..
However, Esprit said that it is confident that it can turn around its performance in the second half of the year..
The company said that it is planning to launch a number of new initiatives, including a new marketing campaign and a new product line..
Esprit is also planning to close some of its underperforming stores and focus on its more profitable locations..
The company said that it is confident that these initiatives will help it to improve its sales and profits in the second half of the year..
Esprit’s shares rose by 3.6% in Hong Kong on Wednesday following the release of the results..
Analysts said that the results were in line with expectations and that the company’s plans for the second half of the year are encouraging..
