In the fiscal year 2015-2016, fashion chain Esprit has managed to return to profitability, thanks to good performances from both its physical stores and its web shop.
Lower turnover, increased profit
Despite an 8.4 % turnover drop to 17.79 billion Hong Kong dollar (2.05 billion euro) compared to last year, Esprit still managed a 21 million Hong Kong dollar (2.4 million euro) profit: a huge improvement compared to the 3.7 billion Hong Kong dollar (426 million euro) loss it suffered last year.
In order to maintain these results in the current fiscal year, Esprit will continue to shut down onerous stores and lower its marketing budget wherever possible.
Successful restructuring
The company has been restructuring for a while, shutting down stores, adjusting prices and changing its logistics, which are all proving worthwhile now.
“The underlying results have markedly improved compared to the year before and were better than expected. We were able to improve thanks to good results in our retail channels (both offline and online), lower costs related to our activities and a positive net fiscal balance for the current year”, Esprit CFO Thomas Tang said.
