Esprit (330 HK) 1H17 Results: Recovers from a Net Loss, but Revenue Shrinks

Executive Summary

• Esprit posted a net profit of HK$66 million for 1H17, a turnaround from the net loss of HK$232 million for the same period last year, driven by an increase in retail sales productivity and trimming operation costs.
• 1H17 revenues declined 10.6% to HK$8.3 billion from HK$9.3 billion in 1H16, due to closures of unprofitable stores and warm weather in Europe.
• The company intends to continue to execute its strategic plan with the primary focus of improving the bottom line. For 2H17, management expects to see little change from 1H17.