The fashion retailer has ended the period with a revenue of 2.8 billion Hong Kong dollars (357.3 million dollars).
Esprit starts the year on the low. The fashion retailer has ended the first quarter of the year (closed on September 30) with a revenue of 2.8 billion Hong Kong dollars (357.3 million dollars), down 14.6%. Despite the result, the group has moderated the fall in sales compared to the end of last year, when it fell 16.3%.
The company, led by Anders Kristiansen, has explained that the fall in its revenues is due to the implementation of the first phase of its restructuring plan, which is to “rationalize” its distribution network and reduce discounts.
The company’s new plan, launched in November 2018, also focuses on the Chinese market, one of the most important regions for the group. However, in the first quarter, Esprit sales in Asia have fallen by 44.4%.
Esprit has shrunk its sales in Europe by 22.9% in the first quarter
In Europe, where it concentrates 85% of its revenue, the company has reduced its revenue by 11.6%. As of September 30, the group had 243 points of sale, 28 stores less than in the same period of 2018.
By distribution channels, sales in its directly operated stores have decreased by 22.9% in the first quarter, due to closures, as explained by the company. Revenues in the multibrand channel also declined during the period, with a 7.2% drop. However, thanks to the new strategy, the company has reduced the fall in wholesale, compared to the 15.5% decline last year. Esprit said in a statement that its goal for the rest of the year is to continue implementing its strategic plan “rigorously” and “implement measures when and where necessary.”