September 28, 2012

Esprit net profit surges in fiscal 2012

Clothing retailer Esprit Holdings has reported an increase in its net profits for the 2012 fiscal ended 30 June to HK$873m ($113m).

By admin-demo

Clothing retailer Esprit Holdings has reported an increase in its net profits for the 2012 fiscal ended 30 June to HK$873m ($113m).

The group registered an operating profit of HK$1,171 ($151m) up from HK$692 ($90m) while EBIT margins improved to 3.9%.

The Group’s retail EBIT margin improved to 6.5% (2011: -5.4%), while the wholesale EBIT margin decreased to 17.7% (2011: 22.9%) as a result of the initiatives and support measures as per the company’s transformation plan.

The retailers expansion plan for FY12/13 includes 1 icon store, 25 retreat stores and 15 normal rebuilding stores.

Approximately 40 wholesale controlled points of sale (POS) will be renovated into retreat stores with another 40 normal rebuilding stores planned for the financial year 12/13.

The Solana store in Beijing was the first icon store in China and has been reopened since September 2012.

Esprit intends to increase its city coverage from the existing 1,013 POS in 191 cities to approximately 1,900 POS in about 400 cities by FY14/15.

A Head of Expansion for China position was created in June 2012 to execute the POS expansion.

The company will also implement a new wholesale business model to allow for stronger strategic support for its wholesale partners in areas such as store renovation and new store openings to ensure a consistent Esprit retail experience.