Esprit Profit Warning Net Profit Decline Higher

Esprit Holdings Limited Si Jie Global Holdings Limited has issued a profit warning, warning that the net profit of the group will drop to HK $4000-5000 between December 31, 2014 and HK $4000-5000 as of the same period of the previous year, a drop of 47.4%-57.9%.

Si Jie said the reason for the sharp decline in turnover was due to the unusual warm weather in Europe in the first half of the year, which led to less than expected sales of autumn and winter products, and the special return agreement on the old stock of wholesale channels in the mainland of China, which was completed in the first quarter, still had an impact on turnover in the first half of the year.

In the first quarter of September 30th, revenue fell 16.4% to HK $5 billion 478 million in the first quarter, and the same store sales decreased by 11.6% year-on-year. Germany and other European countries decreased by 13.5% and 12.6% respectively, and the Asia Pacific region decreased by 2.5%.

The group said it will continue to focus on optimizing the group products in terms of design, quality and value for money through the new vertical business model that has been implemented in July 2014, using faster and more efficient product development and supply chain processes.

The first series of development under the new business mode -- 2015 spring and summer

The series will be on the shelves in February, the group revealed.

The partners responded positively to the products.

After the JPMorgan Chase & Co (NYSE:JPM) Morgan chase updated its expectations for the group, it expects its annual net profit to decrease by nearly 80% to HK $45 million.

Si Jie global financial loss in the 2014 fiscal year, net profit of HK $210 million.

The bank maintains the rating of 0330.HK reduction and the target price of HK $8.5.

Related links:

Recently, the new world department store of Zheng Yutong's family in Hongkong announced that the company acquired a stake in a mainland company, thereby gaining the latter's clothing brand and sales network.

In recent years, the physical retail industry has been hit by online shopping. Hongkong's wealthy businessman Joseph Lau's company has reduced SOGO's department store and Hongkong TheOne department store in recent months.

New world department store has increased its investment in its own brand in the past year, and set its target in the mainland's three or four line market.

Faced with the impact of e-commerce, the thinking of Hong Kong businessmen has split up.

Joseph Lau, a subsidiary of Hongkong fortune merchant, has been reducing its parent company in recent months, and is the sovereign fund of Qatar in the Middle East.

By the end of 2014, the Chinese shopping center had stripped the TheOne shopping center to HK $7 billion 780 million for Joseph Lau.

Industry analysts believe that Joseph Lau may take a look at the physical retail industry in Hongkong and the mainland.

At the same time, Chen Qizong, chairman of Hang Lung estate, said he was not worried about the impact of online shopping. He believed that luxury goods would focus on the best shopping centers, and Hang Lung's strategy was to build a top shopping mall.

The New World Department reveals that the group will focus on expanding its territory in the future, and plans to move its business to the three or four tier cities in the Midwest.

The recent acquisition of New World Department also includes channel resources.

Xie Chen, senior director of the global research department of World Bank Richard Ellis, told reporters that the proportion of consumers in the three or four tier cities who spend on online shopping is much higher than that of the second tier cities.

This means that the layout of department stores in the three or four tier cities is far from enough, and the consumption of residents is not satisfied.

Zhejiang Yintai and other department stores gradually expand their layout to other traditional high consumption cities such as Hangzhou, Ningbo and Wenzhou.

Xie Chunchen, partner of Shanghai Rui Jie network technology company, who is engaged in retail management, told reporters that in the survey, some high-income people are willing to pay for the experience of the physical store, spend money on services, and value the service of the "fitting room" in the physical store, and communicate with the shop assistants.

Therefore, in the blank area of the three or four line cities, department stores are still very few, and they need to fill in the air without saturation.