Tag: esprit

  • Likely loss in first half, Esprit Holdings to be alert

    Likely loss in first half, Esprit Holdings to be alert

    Fashion group Esprit Holdings has issued a warning it expects a net loss for its first half, to the end of December.

    Based on a preliminary review of its unaudited consolidated management accounts, the net loss is expected to be in the range of about HK$950 million (US$121.5 million) to $980 million, compared to a net profit of $61 million in the same period a year earlier.

    Esprit attributes the anticipated loss to the combination of three major factors:

    1. Full impairment of the remaining balance of the goodwill and customer relationships in association with the group’s China business, which has had a “significant decline” in recent years, resulting in a negative impact of about $795 million before taxation.

    2. A larger-than-expected drop in group revenue in the second quarter after expecting a modest decline as a result of strategic rationalisation of its distribution footprint. The decline was exacerbated by lower sales at its brick-and-mortar stores. As a result, loss before interest and taxation (LBIT) and before the China Impairment is estimated to be in the range of $150 million to $180 million for the first half, compared to LBIT of $13 million in the same period a year earlier. While gross profit margin had slightly increased and running expenses had further reduced in the first half, it was not enough to outweigh the negative impact of the revenue decline.

    3. Net taxation expense of about $5 million in the first half in contrast to a net taxation credit of $74 million in the same period last year.

    Esprit’s company secretary, Florence Ng Wai Yin, says the board wants to reassure shareholders that the group is in the midst of fine tuning its strategic measures to establish a solid platform for long-term profitable growth. “The retail environment continues to be challenging, and because of the seasonality of the business, the performance in the second half of a financial year is usually not as good as the first half. This means the financial performance of the group in the second half remains uncertain.”

    Esprit expects to release its interim results at the end of next month.  

  • Esprit Holdings shares worth HK$900m given to sisters

    Esprit Holdings shares worth HK$900m given to sisters

    Former Esprit Holdings chairman Michael Ying Lee-yuen has transferred all 211.8 million shares he owned in the fashion group, worth HK$900 million (US$115 million), to his two daughters.

    Ying, the husband of former movie star Lin Ching-hsia, transferred the shares to the company Total Market, according to a Hong Kong stock exchange disclosure of interests filing.

    His daughters Claudine Lauren Ying, 29, and Eileen Ying, 20, each own half of Total Market. Neither daughter has previously owned Esprit shares, but the transactions makes them jointly the brand’s second-largest shareholder with a 10.97 per cent stake.

    Their 67-year-old father no longer owns any Esprit shares. He joined the fashion group in the 1970s and played a key role in building it into a global brand. He stepped down as head in 2006, and had sold most of his stake by 2010.

    Ying has a net worth of about US$2.4 billion, Forbes estimates.

  • Recycled-plastic fabric launched by Esprit

    Recycled-plastic fabric launched by Esprit

    A special capsule collection for women and men featuring recycled-plastic fabric has been launched by Esprit.

    The Good Collection includes classics like a denim jacket, pencil skirt with straps, oversized sweatshirt with school logo, culottes, rain cape, bomber jacket, knit styles with humorous all-over letter print or striped longsleeves with the brand’s logo, as well as denim in trendy silhouettes and washings.

    In total, there are 21 articles for women and 15 for men available, ranging from tee-shirts to a knit dress.

    The company describes it as a stylistic tribute to the brand’s beginnings, saying Esprit’s basic manifesto has always included an awareness for mankind and the environment, long before terms like “sustainability” or “social conscience” came along. Consequently, much of the collection features natural styles made from organic cotton or recycled materials such as cellulose (PET).

    Susie Bell and Doug Tompkins started Esprit in California in 1968, and as children of the hippie and peace movements regarded compliance with social and environmental aspects as normal.

  • Revenue drop for Esprit Holdings

    Revenue drop for Esprit Holdings

    Asia Pacific revenue fell 17.5 per cent year on year for Esprit Holdings for its fiscal year to the end of June, offset by a 43 per cent e-commerce boost.

    The drop was 18.8 per cent in the first half, easing to 16 per cent.

    Esprit says it faces “certain difficulties” in APAC that differ from its challenges in Europe.

    Firstly, in China, its largest market, retail space is concentrated both in POS in department stores that are attracting less traffic, and in off-price outlets that are usually brand dilutive.

    “To this end, we are implementing an aggressive restructuring of our network in China, and have made good progress,” says the company, which closed 29.7 per cent of controlled space (retail and wholesale combined) during the year. “Moreover, a new concept has been developed to adapt to the small spaces in these POS.”

    With specific product requirements in APAC, the company is complementing its global collections with a dedicated product line for the region.

    Esprit says the reduction in sales area is in line with its plan to accelerate a restructuring of the store network. With APAC lease terms fortunately generally short, the leases of most of the heavy loss-making stores will expire in the next two financial years.

    Meanwhile, e-shop APAC reached HK$221 million (US$28 million) revenue for the year, an increase of 43.1 per cent. This was fuelled by actions such as the integration of the Esprit Friends loyalty program into the e-shop, the strengthening of its business with Tmall, the expansion of its online presence in China through such platforms such as WeChat and Weibo, and collaborations with celebrities and key opinion leaders through social media.

  • Esprit Holdings expects profit to more than double

    Esprit Holdings expects profit to more than double

    Fashion group Esprit Holdings expects to more than double its net profit for its financial year to the end of June, it has announced in a profit estimate for The Stock Exchange of Hong Kong.

    In a preliminary review of its unaudited consolidated management accounts, the company expects a net profit in the range of about HK$50 million (US$6 million) to $80 million, compared to the previous year’s $21 million.

    Company secretary Florence Ng Wai Yin says the overall development is attributable to two main factors:

    (i) an improvement of the financial performance of the group’s underlying business (excluding exceptional items), estimated to be about $370 million to $400 million; and

    (ii) less favourable taxation credit, which has been reduced to roughly between $156 million to $186 million compared to last year’s $606 million.

    The company expects to release its final results announcement next month.

  • Esprit restructures its marketing division

    Esprit restructures its marketing division

    Back in April, Vincent Jeanniard already joined the Esprit fashion group as Head of Global Marketing. The 46-year-old executive is leading the fusion of the company’s brand and go-to-market marketing teams into one department.

    The move is intended to ramp up Esprit’s marketing efforts and make them more dynamic to be able to react more quickly to customer needs and a younger target group. The fusion is also part of the restructuring program Esprit has rolled out to fight its recent decline in sales.

    “Vincent and the merged team will be responsible for the development and implementation of the marketing strategy and activities across all departments, markets and channels,” the company said in a statement.

    Vincent Jeanniard has held various positions in the global brand and marketing sector, especially executive roles in the beauty and fashion industry. Most recently Jeanniard was vice president of Burberry Beauty in London.

    Between 2006 and 2013, he worked as a general manager in the beauty industry for companies like Christian Dior in the UK and Ireland, L’Oréal Luxury Division in Brazil and Shu Uemura in Tokyo.

    He will be assisted by Rob McIntosh, who will join the brand as Chief Brand Officer on 1 August 2017 and a member of the Executive Management Team (EMT) at Esprit.

    McIntosh has already worked in various creative positions for major brands such as Apple, J.Crew and BMW. Most recently, he was Head of Experience Design at AKQA London, an innovative creative agency.

    Esprit Holdings Ltd. currently operates 6,137 stores in 40 countries. Its recent sales posted a double-digit loss when adjusted for exchange rates, which management says will continue unchanged in the fourth quarter as well.

    Further changes under the restructuring plan include the closure of unprofitable stores, the reduction of advertising measures, price reductions and streamlining of operating costs.

    Esprit’s headquarters are located in Ratingen near Düsseldorf, Germany and in Hong Kong. The brand will be celebrates its 50th anniversary in 2018.

  • Jabong adds international fashion wear brand Esprit to its product portfolio

    Jabong adds international fashion wear brand Esprit to its product portfolio

    India’s leading fashion etailer, Jabong has announced the addition of another leading international fashionwear brand, Esprit, to its product portfolio. A publicly owned manufacturer of clothing, footwear, accessories, jewellery and housewares, Esprit will be available on Jabong for men and women in more than a 1000 variants across categories such as apparels, watches and bags with the prices ranging from Rs. 499 to Rs. 16999. The Esprit launch will be supported by digital and social media campaigns and through Esprit logo promotion on Jabong’s latest TVC.

    “We are delighted to partner with Jabong, which is credited with bringing top premium global fashion to India. Effortless style, authenticity and easy-going living are a part of the ethos of Esprit’s brand philosophy which resonates well with Jabong’s brand philosophy of ‘be you’. Jabong’s upmarket, fashion forward customer base is the exact target audience to optimize our online presence in India, and we look forward to our lasting partnership with Jabong,” said Guillaume Thery, General Manager Asia-Pacific, Esprit.

    Gunjan Soni, Head of Jabong, adds, “Esprit is an excellent addition to our finely curated international casual fashion portfolio. Through its natural materials and made-to-last quality, Esprit offers effortless style, authenticity and easy-going living. Jabong has come to be known for its selection of premium, luxury brands and we will continue to add the hottest fashion brands to our collection in the coming months.”

    Esprit has been representing style and quality since 1968 and has a presence in 40 countries. It works on a basis of creativity and responsibility, fused with a sunny Californian attitude, that is expressed in its effortless, relaxed and comfortable Esprit style. It is a member of the Business Social Compliance Initiative (BSCI), which works against child labor, and is a founding member of the Sustainable Apparel Coalition (SAC).

    Jabong is expanding its product portfolio aggressively and has earlier added 35 brands in this year including New Era Caps, Forever 21, Aeropostale, Scotch & Soda, Antony Morato, Forever New, Mothercare, Gstar, Elle, Columbia, Speedo, All About You, Roadster and Wrogn among others. It also recently launched the Jabong Mood Store, which is India’s first-ever innovative comprehensive online store that allows the entire look to be shopped together, rather than buying different clothes and accessories separately and then pairing them.

  • Esprit looks to open physical stores in India

    Esprit looks to open physical stores in India

    Hong Kong-based fashion brand Esprit is planning to make a comeback in the Indian market and looking for mall space to open stores. Esprit is also in talks with online fashion retailer Myntra to boost offline presence of the brand, citing sources.

    Esprit is reportedly in talks with online fashion retailer Myntra to open Esprit-branded physical store in the country.

    “Yes, Esprit is coming back. The top guys from abroad had come about three weeks ago and they were looking for (mall) space,” a person familiar with the matter told ET.

    The second person said Esprit is in talks with online fashion retailer Myntra to open Esprit-branded physical store in the country. Myntra already sells Esprit products online through an exclusive deal signed with the fashion brand late last year. Esprit and Myntra did not respond to queries on the matter.

    Esprit had entered India in 2005 in a distribution partnership with Aditya Birla Group. However, poor business growth forced the company to shut operations in the country in 2013.

    The fashion brand operates in 40 countries through more than 700 retail stores and over 6,000 points of sale, including franchise stores and shop-in-shops in department stores.

  • Esprit jewellery set for revamp with new partner

    Esprit jewellery set for revamp with new partner

    The Esprit jewellery line-up is set for a major revamp after the appointment of a new licensee, Versteegh modeaccessoires effective July 1.

    Esprit says that with more than 60 years of experience in the wholesale trade, Versteegh brings valuable know-how and important expertise in the field of fashion accessories to the partnership.

    “Thanks to their excellent supplier network, Versteegh is able to guarantee short and reliable delivery times. The Esprit-branded jewellery collection from Versteegh will be available internationally in Esprit’s own retail stores and online,” said Maria Pambori, VP head of global licenses/product with Esprit.

    “Together with our new partner, we want to excite our customers with a product portfolio that reflects the latest trends and interprets them through the philosophy of our brand Esprit. With Versteegh we have found a partner who attaches great importance to quality, has a keen sense of trends and thus perfectly meets our high requirements.”

    Versteegh director Frans Lenting said the positioning of Esprit offers his company an ideal platform for its products.

    “We are looking forward to making a great impression on Esprit customers with our collections.”

    Headquartered in Houten in the Netherlands, Versteegh is an international wholesaler in the field of fashion jewellery and accessories. Its own design and styling team regularly provides for new collections.

    Alongside jewellery, the company also sells bags, sunglasses, watches, hair accessories and gloves.

  • Esprit announces branded jewelry collection from Versteegh

    Esprit announces branded jewelry collection from Versteegh

    Esprit has concluded a new license partnership in the area of fashion jewelry with Versteegh modeaccessoires effective 1 July 2017. With more than 60 years of experience in the wholesale trade, Versteegh brings to the cooperation valuable know-how and important expertise in the field of fashion accessories. Thanks to their excellent supplier network, Versteegh is able to guarantee short and reliable delivery times. The Esprit branded jewelry collection from Versteegh will be available internationally in Esprit’s own retail stores and e-shop.
    Maria Pambori, VP Head of Global Licenses/Product Esprit: “Together with our new partner, we want to excite our customers with a product portfolio that reflects the latest trends and interprets them through the philosophy of our brand Esprit. With Versteegh we have found a partner who attaches great importance to quality, has a keen sense of trends and thus perfectly meets our high requirements.”

    “Due to its positioning, the brand Esprit offers an ideal platform for our products. We are excited about the cooperation and are looking forward to making a great impression on Esprit customers with our collections” says Frans Lenting, Director of Versteegh.

  • Retail woes a boost for Hong Kong indie fashion

    Retail woes a boost for Hong Kong indie fashion

    High-end international brands have long held court alongside local Hong Kong indie fashion designers – who are now enjoying greater visibility in the city’s vibrant retail market.

    The city’s deep-rooted love of luxury has seen names like Gucci and Hermes open multiple stores in the city – stores that have co-existed with a stable of local apparel brands, such as Giordano, Baleno, Bossini and Esprit.

    By 2014, consumers’ tastes had diversified and fast-fashion overseas brands began descending on Hong Kong. The arrival of names like Topshop, American Eagle, H&M, Zara and Mango added yet more to the mix in Asia’s favourite shopping destination. Now that shop rents are finally becoming more affordable, independent fashion retailers are increasingly making their presence felt.

    Structural change

    In a report by commercial real estate firm CBRE, Joe Lin, executive director, retail services at CBRE Hong Kong, said that the city is undergoing a period of structural change.

    “Over the previous decade, high-street shop landlords have reaped the benefits of strong demand from luxury retailers and massive rental growth.”

    Lin noted that in the past 12 months, luxury retailers have adjusted their leasing strategies to save costs. “Landlords have become more realistic on rental negotiations, enabling more mid-range brands to tap into prime locations at relatively affordable rental levels.”

    The trend has opened the door for mid-market brands to expand, and for the rise of independent labels.

    “More independent stores are coming back to the market, streets, malls, and even some up-and-coming revitalised buildings in the traditional industrial districts, such as Lai Chi Kok and Kwun Tong,” said Lin. “They modernise the decoration and with the decent F&B outlets that draw good foot-traffic to these areas, independent retailers also benefit from this new trend.”

    Refined taste

    British fashion designer Elizabeth Lau established The Refinery in 2014 after moving to Hong Kong with her husband. Lau said she saw an opportunity to “curate for individuals” in Hong Kong by introducing unique fashion, accessories and lifestyle brands from around the world.

    Her first store, at the creative and design hub PMQ in Central, found a steady following, and in January 2016, The Refinery opened a second retail outlet in Tai Koo.

    Fashion edit

    Partners in fashion Genevieve Chew and Jacqueline Chak, an accountant and architect respectively, launched Edit in Central in 2012 as a concept store stocking emerging brands. They later created their own in-house label, which is described as “one part eclectic femininity and the other relaxed ease.” Their collections are worn by fashion personalities such as Yasmin Sewell, Margaret Zhang and Amanda Strang. The partners have also designed uniforms for Hong Kong’s new boutique Tribute Hotel in Kowloon.

    Fé Valvekens is another career-change entrepreneur who found her fashion foothold in Hong Kong. German-born Valvekens is a qualified engineer who founded fashion label A Day with Fé, blending daywear with yoga wear. Her PMQ store in Central also holds yoga and fashion styling workshops

    Quality indie labels

    Building on her established career in fashion, US expat Jamie Dredge co-founded Polkadot Boutique on Hollywood Road, Central, in 2011. After moving to Hong Kong two years earlier, Dredge spotted a gap between high-end luxury designers and mass-market clothing in Hong Kong.

    Her idea was to offer quality, well-designed womenswear and accessories from indie labels in the US, as well as supporting upcoming local designers.

    “We still have our local-based designers, but are also working with hot new labels out of Los Angeles and New York,” she said. Examples include Yumi Kim and Blank NYC Denim from New York, Veronica M from Los Angeles, and Hong Kong’s What the Frock?!.

    Being an independent retailer in Hong Kong has its challenges, said Dredge. Rents remain high, especially for smaller operators who don’t have the negotiating leverage of a famous brand. The demise of free print lifestyle magazine HK Magazine, which folded last year after 25 years, closed one door for independents to build a profile – and paid advertising is expensive.

    “We now have to work harder on our social media channels – and be more creative in our promotions,” Dredge said.

    On the other hand, word-of-mouth networking is an advantage in a city as close knit as Hong Kong.

    Pop-ups and collaborations

    One of Polkadot’s strategies is to host events where customers can meet the designers for a social night out, which might involve hair and makeup as well as fashion. One of the “biggest perks of Hong Kong” is the willingness of businesses to collaborate with each other, Dredge said.

    “Hong Kong is great for doing pop-up events and collaborations, which get the customers involved,” she said.

    It also illustrates how a physical boutique can still be successful, despite the challenges of online shopping.

    “People still like to feel the clothes, to try them on, to talk to the designer,” she said.

    “A lot of our garments are unique, and many of them exclusive. Our customers aren’t walking around seeing other people dressed the same, and that’s why they come to us.”

    -HKTDC

  • Esprit Holdings moves out of the red

    Esprit Holdings moves out of the red

    Fashion group Esprit Holdings says it has made a “significant recovery”, turning around its HK$238 million (US$30.6 million) loss to record a net profit of HK$61 million for its first half.

    While the improvement was driven by retail sales, the group says two other major developments were a vital element of the growth in overall profitability for the half-year, to December 31:

    • The ongoing downsizing of the scale of the business, including the closure of unprofitable stores and low-performing wholesale locations.
    • Management moves increased the group’s gross profit margin, including fewer promotional activities, price markdowns and discounts for wholesale partners.

    As a result, the first-half unaudited figures show a 9.9 per cent drop in revenue to $8.323 billion. However, the measures produced the intended improvement in profitability, with gross profit margin increasing by 2 per cent .

    During the period, the group closed 9412 sqm of retail space, with coupled with the closure of 25,806 sqm in the previous six months represented a 11.1 per cent year-on-year reduction.

    Asia Pacific retail, excluding online sales, at HK$951 million, fell by 21.5 per cent. Retail space was reduced by 18.5 per cent.

    “It is important to note that in APAC we had the most drastic reduction of promotional activities and price markdowns,” says the company.

    Esprit’s Eshop brought in 24 per cent of total group revenue, generating HK$1.993 billion, down by 2.4 per cent. However, there was a 58.7 per cent leap in revenue for Eshop APAC to HK$119 million.

    China represented more than 80 per cent of the Eshop sales in the region. It recorded revenue growth of 54.9 per cent, fuelled by the integration of the Esprit Friends loyalty program, the strengthening of activities with Tmall, the expansion of its online presence through platforms such as WeChat and Weibo, and collaborations with celebrities and opinion leaders to enhance brand equity through social media.

  • Esprit India to sell on Myntra

    Esprit India to sell on Myntra

    Esprit India has secured an exclusive online partnership with online fashion retailer Myntra.

    Esprit will sell its men’s and women’s casual wear range on the platform, and will launch its latest collection exclusively online on Myntra. The all new winter wear collection by Esprit aspires to revive 90s fashion and sports luxe in a selection of 405 different styles.

    Gunjan Soni, CMO and head of international brands business with Myntra, says Esprit is a truly international fashion brand with global appeal and a brand ethos that exemplifies comfortable fashion.

    “It gives us great pride to forge an exclusive association with Esprit as part of our focused endeavor in making Myntra the de-facto destination for International fashion in India.”

    Guillaume Thery, GM Asia-Pacific with Esprit, added: “Esprit has built strong brand equity among shoppers in India over the years. With the exponential growth of the online shopping medium and the expansive market of India, it was imperative that we work with the segment leader in taking our brand development to the next level. Myntra was the obvious partner of choice given their understanding of the online fashion landscape and their ability to partner and develop strategies that complement our business imperatives for the region.”

    Myntra has emerged as India’s leading fashion e-tailer and home to the largest selection of international premium fashion brands, including Nike, Adidas, Puma, Levis, Wrangler, Arrow, Jealous 21, Diesel, CAT, Harley Davidson, Ferrari, Timberland, US Polo, FabIndia and Biba.

  • Esprit posts profit in major recovery

    Esprit posts profit in major recovery

    Esprit Holdings (0330) posted a net profit of HK$21 million for the financial year ended June, marking a sharp turnaround from a HK$3.7 billion loss in the previous financial year.

    Chairman Raymond Or Ching-fai said the company’s return to the black was driven by the strong performance of its online and offline retail channels, reduction in the cost of operations and an exceptional gain from the sale of office premises in Hong Kong.

    “We have achieved what we wanted to do, we have stopped the ‘bleeding.’ For the first time, we were able to stop the continuous decline,” said chief executive Jose Manuel Martinez Gutierrez.

    It returned to profitability even if revenue fell 8.41 percent year-on-year to HK$17.79 billion. Sales from Germany, its biggest overseas market, slid 5.9 percent to HK$8.56 billion. Revenue from the rest of Europe, representing 37 percent of the group’s total sales, amounted to HK$6.58 billion, down 7.4 percent.

    In the Asia Pacific, including Hong Kong, revenue dropped 17.6 percent to HK$2.65 billion. Or said the overall market conditions remain challenging. He said the clothing industry was going through significant changes fueled by the development of online [marketing] channels and aggressive price competition.

    Europe’s macroeconomic prospects look uncertain, while the Asian market has turned weaker than before, Or added. In the financial year ended June, Esprit closed down 185 retail stores globally, reducing its net sales area by 10.90 percent. Gutierrez said Esprit will step up the closure of loss-making retail outlets.Over the next two years, it also plans to cut operating expenses by HK$1 billion. He said he expects the strong growth momentum of its online business in Europe and in Asia Pacific to continue. Revenue from its online e-shop grew 6.9 percent to HK$4.15 billion.

    Online sales made up 23.3 percent of total revenue, up from 20 percent in the previous fiscal year. Earnings per share was HK$0.01 and no dividend was declared.

    Chief financial officer Thomas Tang Wing-yung said no dividend was declared as profit was not significant, but Esprit will consider giving out dividends if it makes better profit in the next financial year.

  • Esprit sales flat

    Esprit sales flat

    Reporting “flat” revenue for its third quarter, Hong Kong-listed clothing retailer Esprit Holdings points the finger at negative growth in its Asia Pacific stores, as well as weakness in its wholesale channel.

    There was a marginal decline of 0.1 per cent in Esprit sales for the three months but the company continued to benefit from improved product performance, as well as improved marketing and channel operations.

    Retail revenue (63.3 per cent of the group’s income) grew 3.1 per cent year-on-year, primarily driven by the European region.

    Particularly encouraging for the group was the continuation of the positive trends in several areas. The women’s divisions (including Esprit and EDC branded products) had retail revenue growth of 6.6 per cent for the quarter; plus comparable stores sales growth (including online) was up 10.3 per cent; while online sales totalled HK$984 million (US$126.8 million) – 35.4 per cent of the group’s retail revenue and an increase of 11.7 per cent.

    Performance, meanwhile, was still weak in Asia Pacific (15.2 per cent of the group’s revenue), with revenue tumbling 15.3 per cent.

    Esprit says the performance of Asia Pacific continued to be undermined by a combination of unfavourable macro-factors, including volatility in the financial markets, weak consumer sentiment amid the slowdown of economic growth in China, and reduced tourist flow in the region.