Esprit Si Jie Global Losses

Esprit Holdings Limited 0330.HK announced today that it has made a profit in the 2014 fiscal year ended June 30th, achieving a net profit of HK $210 million, or HK $0.11 per share, far exceeding the market forecast of HK $0.071, compared with a net loss of HK $4 billion 390 million in the 2013 fiscal year or HK $2.50 per share.

The year-on-year income fell 6.5% to HK $24 billion 230 million, a year-on-year rate of HK $25 billion 900 million, or 9.9% in local currency terms.

The group is expected to continue to close down.

And for wholesale customers, revenues in the current 2015 fiscal year will go down further, but gross margins will benefit slightly from the improvement of the supply chain.

This is 50.2%, an increase of 60 basis points over the whole year of 49.6%, mainly due to the improvement in inventory management, resulting in a reduction in price and an increase in the proportion of retail revenue.

Operating expenses decreased significantly by HK $5 billion 212 million, or HK $30.6% to HK $11 billion 795 million.

Asia Pacific Region

And wholesale business continued to be under pressure. Retail channel revenue fell by 15.6% to HK $3 billion 159 million per annualized group. The group blamed retail area correction, reduced stream of people, lower stock and product mix average price, and wholesale channel revenue decreased by 46.5% to HK $524 million over the same period.

The overall income recorded a decrease of 22.2% from HK $4 billion 738 million last year to HK $3 billion 685 million, of which the largest market in the region was not as good as China and its revenue declined by 26.9%.

The European market, which accounts for 81.3% of revenue, has continued to achieve a stable sales area. Its revenue has declined by 1.8% to HK $19 billion 700 million over the same period last year, of which Germany's business revenue has increased by 1.4%.

As of the end of June, the group had 905 sales outlets, 119 fewer than last year, and closed stores mainly concentrated in China and Australia.

The group announced a final dividend of HK $0.04 per share.

After the announcement of 0330.HK, shares rose sharply at 9% to HK $13.52 in the afternoon, narrowing to 3.23% at the end of the draft without stylish Chinese net, at HK $12.80.