Esprit Strong Recovery Is Closely Related To The Development Of E-Commerce.

In the 2016 fiscal year, the Esprit Holdings Ltd. Asia Pacific market still had a large fixed exchange rate decline of 12.5%, of which 18% of China's (mainland) market fixed exchange rate declines led to the regional market.

In the 2016 fiscal year, the Asia Pacific electricity market accounted for only 6.1% of the regional market revenues, and 22.9% of the European market (except Germany) and the German market close to 30%. It also fell far behind the 23.3% of the group's overall e-commerce business.

The special income of HK $1 billion 337 million, which was sold for Hongkong office, tax provision, net tax and net tax, resulted in a profit of HK $21 million in net profit from the Esprit Holdings Ltd. Global Holdings Limited, which was HK $3 billion 696 million in the same period last year, compared with 3 billion 696 million Hong Kong dollars in the same period last year.

In the 2016 fiscal year ended June 30, 2016, Esprit Holdings Ltd.'s revenue declined by 8.4%, down from HK $19 billion 421 million to HK $17 billion 788 million in the same period last year. However, the decline in sales was mainly controlled by 13.1% of controlled sales area. On the basis of comparison, 2016 of the group's revenue decreased by 1.1% in the 2016 fiscal year, while the previous four fiscal years decreased by 11.5%, 9.9%, 11.5% and 11.5% respectively.

In addition to the overall improvement in sales, the group said that the retail business was also improving.

In the 2016 fiscal year, Esprit Holdings Ltd. Si Jie global recorded a gross profit of HK $8 billion 929 million, down 7.9% from HK $96.95 billion in the same period last year, and the gross margin of 50.2% was slightly improved compared with 49.9% in the same period last year.

The decrease in operating costs mainly benefited from a reduction of 800 to 8300 employees and 9.8% reduction in staff costs, but at the same time layoffs resulted in a one-time expenditure of HK $462 million.

Around the world

In the 2016 fiscal year, the group's brand name Esprit brand women's clothing sales showed a 1.7% fixed exchange rate growth. In the case of a strong Hong Kong dollar, it actually dropped 5.8% to HK $8 billion 83 million.

Esprit women's clothing currently accounts for only half of the group's sales, with a share of 45.4%, which has an increase of 120 basis points compared with the same period last year.

Esprit Holdings Ltd. said that the improvement of the same name women's clothing business mainly benefited from the group's most efforts in the vertical mode to develop products that improved in design, quality and cost performance. Group management once considered the product to be a key element of the group's turnaround.

The 2016 fiscal year is the first full financial year of Esprit women's clothing.

According to the fixed exchange rate, in the 2016 fiscal year, the retail sales of Esprit women's clothing business recorded a 6.7% increase in sales, of which two categories of Casual and Collection were 7.7% and 8.8% respectively.

Growth.

In addition to Esprit women's wear, EDC women's clothing business has also improved, although 1.5% of the fixed exchange rate decline, but the same period last year fell by 14.2%.

The largest single market in the group, the rise and fall of German market revenue is also the main reason for the sharp improvement of Esprit Holdings Ltd.'s global business.

2016 fiscal year, accounting for 48.1%.

The revenue recorded HK $85.59 HK $5.9%, down 5.9%. If the Hong Kong dollar is not strong, there will be a 2.1% increase in the fixed exchange rate. After that, 10.1% of the sales area will be reduced.

Retail sales in Germany (excluding e-commerce) grew by 5% to HK $3 billion 79 million in the 2016 fiscal year, accounting for 36% of the total German market revenue. During the period, the German electricity market revenue increased by 11.5%. The proportion of electricity suppliers' income in the German market was 28.9% to 2 billion 480 million Hong Kong dollars.

Only 34.8% of wholesale income fell by 7.4%.

In addition to the German market, most other markets in Europe have improved significantly. Only the most competitive British market is still weak.

As for the Asia Pacific market, especially in the Chinese market, Esprit Holdings Ltd. Ltd. is still weak. The group failed to resist the downward trend of China's economy, especially in the consumer market, especially in the clothing market. In addition, the intensified competition in the Chinese market also added more difficulties to the Esprit Holdings Ltd..

For the group's profit and loss and the resumption of the core women's clothing business, Esprit Holdings Ltd., chief executive of Sijie global (HK's "chief executive") Jose Manuel MARTINEZ GUTIERREZ pointed out that after three years of improvement, the group's main objectives have been achieved. However, he said that the two important businesses of the distribution channel and the Asia Pacific market still need to face difficulties, and in the future, they must continue to focus on improving profits.

In addition, he said, the retail controlled area of the group will continue to decline in high digits, mainly due to the continued closure of the loss shops, while the wholesale business area will continue to maintain its previous deceleration, and it is expected that the electricity business will continue to grow at a high speed.

For earlier group chairman Ke Qinghui pointed out that 10% of the layoffs were negotiated with German trade unions. Deng Yongyong, chairman of group finance, said it was close to completion, and the recent unintentional layoffs plan.

As of the end of June, in the 2016 fiscal year, Esprit Holdings Ltd. has operated 761 Direct stores worldwide, with a total reduction of 129, including 384 separate stores, 288 department stores and 89 discount stores.

The group said profitability was still weak, and it was not recommended to send final interest.