ESPRIT (0330.HK) 1H16 Results: Sales Declines Stabilize, Company Continues to Execute Vertical and Omni-Channel Strategy

Executive Summary

• Esprit reported fiscal 1H16 revenues of HK$9.3 billion, down 13.1% year over year and down just 0.4% in local currency terms, a substantial improvement over prior periods. Reported EPS was HK$(0.12), compared to a profit of HK$0.02 per share in the prior period.
• In local currency terms, retail sales, which account for 67.2% of group sales, grew by 6.0% year over year, driven by sales growth of 8.6% in Europe.
• The company continues to execute its strategic plan, focusing on vertical and omni-channel models.