Fashion Brand Esprit Begins To Reverse Its Declining Trend

By the end of June,

Esprit, its parent company, made a profit of 21 million last year, but it lost 3 billion 696 million yuan in the same period last year.

Last year, its sales fell 8.41% to 17 billion 788 million yuan, and gross profit was 8 billion 929 million yuan, down 7.9% from last year.

The gross profit margin was 50.2%, keeping stable, a slight increase of 0.3% compared with last year.

In the pformation of business models, it was

Jose Manuel Martinez Martinez, chief executive of Inditex's top executive of the parent company, introduced the ZARA mode to Esprit, shortening the shelf time of goods from an average of 10 months in the past to 3 to 4 months, and changing the design, quality and cost performance of products in all directions.

In the image reform, including the first half of the year, the Korean pop star Song Hye Kyo, who has been popular in the first half of the year, has been invited to serve as the new season clothing spokesperson in 2016. Earlier, Song Hye Kyo's "descendants of the sun" set up various viewing records in China and in Asia. Some analysts pointed out that Song Hye Kyo has many fans in China and Asia.

Young people are getting a lot of exposure and are beginning to get rid of the decline of Esprit image.

However, Esprit is still in a difficult pition and is accelerating the restructuring of cost cutting measures. The company said it will maintain a series of one-time cost reductions, such as shutting down some loss shops that are affected by the economic slowdown. Earlier, the company attributed the weakness of its performance to the slowdown in economic growth in the mainland and Hongkong and weakened consumer confidence.

Jose Manuel Martinez pointed out that after three years of restructuring, the group's main objectives have been completed, but he said that in the wholesale market and the two important areas of the Asia Pacific region still facing the retail adversity, the future will continue to focus on improving profits.

Deng Yongyong, chief financial officer, said in a performance press conference that the number of people in the store has been reduced due to fluctuations in the global financial market and the slowdown in the mainland economy, while the group has been depressed by income and profits through the sales promotion. However, he stressed that the group has clear strategies and plans to continuously improve its operating efficiency, and believes that the electricity supplier income will continue to record a steady increase, supporting the group's performance and gross margin performance to continue to improve.

Earlier, group chairman Ke Qinghui pointed out that the agreement with German trade unions will be laid off by 10%. Deng Yongyong disclosed that the layoffs were nearly completed and there were no other layoffs.

The clothing brand Esprit was founded in San Francisco by the founder of North Face Douglas Tompkins and its ex-wife Susie Russell in 1968, and entered the Chinese market in 1992. At that time, it was sought after by Chinese young people, but it is now squeezing the market share faster than its late entry into the Chinese market such as H&M and ZARA.

Its stock price has risen more than 20% in the past 3 months, and its market value is about HK $13 billion.