The Hong Kong-based Esprit Holdings has announced its retreat from the North American market, involving the shutdown of 93 directly managed stores in the region. It will also close 65 loss-making stores in Europe - including all its stores in Spain, Denmark and Sweden - and 15 others in the Asia-Pacific region.
The provisions related to this drastic austerity program contributed to depress Esprit's financial results for its past fiscal year, ended on June 30, to 79 million Hong Kong dollars (€7.4m-$9.9m) from HK$5.74 billion in the prior year. The report sent the company's share price down by 17.6 percent.
Total revenues inched up by 0.5 percent to HK$33.76 billion (€3,182m-$4,391m). Retail revenues grew by 6.2 percent to 56.4 percent of the total, but wholesale fell by 6 percent.
Esprit wants to centralize its sourcing activities, create design hubs in Paris and China, and open more than 200 new franchises outside China in the next four years. In China, the number of Esprit stores is set to grow from 1,000 to 1,900.