Esprit has sent out a new profit warning, indicating that it will likely report significant losses for the financial year ending June 30, due in large part to aggressive discounting in Europe to clear excess inventories through January, store closures and the reorganization of the company's business in China. In the first nine months of the financial year, sales declined by almost 20 percent to 15 billion Hong Kong dollars (€1.7bn-$1.9bn), down by 12.8 percent in local currencies. They were apparently down sharply also in April.