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    Esprit Global Still Fails To Get Out Of The Quagmire Of Performance Decline

    2015/5/19 16:32:00 66

    Esprit GlobalPerformanceSame Store Sales

    Esprit global believes that during the transformation period, the group's more streamlined supply chain can keep good effect on reducing procurement costs, and the saved costs can be used for reinvestment. Therefore, the new series developed in the new vertical mode still needs time to evaluate the effect. In order to promote sales and support the sustainable growth of sales, in the next step, Esprit global will increase the launch of marketing and implement a challenging omni-directional channel model to enhance the customer experience under a variety of distribution channels.

    It can be seen that although SJ global has started to promote the reform of the vertical supply chain model and has approved the new model, whether its transformation can change the downward trend for many years remains to be tested. As of the end of March, the group has 888 stores in the global market, including 550 in the Asia Pacific region.

    According to the latest report of the third quarter of the previous fiscal year as of March 31 issued by the company, Esprit Global Revenue fell to HK $4.51 billion from HK $6.052 billion in the same period of the previous year, representing a decrease of 12.2% in local currency terms (25.5% in Hong Kong dollar terms), slightly narrowed compared with 13.2% in the first half of the fiscal year, and same store sales decreased by 8.2% year-on-year. But Esprit global is still confident that the existing strategy will revive the business.

    For the third quarter achievement The reasons for the decline were as follows: the closing of loss making stores resulted in a 9.7% year-on-year decrease in controllable area, and continued weak sales performance at the end of autumn and winter Europe In particular, the German clothing market continued to be depressed, and the euro devalued by 17.7% against the Hong Kong dollar. In terms of regional performance, the rest of Europe was the worst, with revenue plummeting 31.5% to HK $1.636 billion, or 17.8% in local currency terms. At the same time, Esprit's global currency market fell by 11.4% to 27.3% of global currency market.

    In addition, revenue in the Asia Pacific region increased by 1.1% in local currency terms, but decreased by 3.3% in Hong Kong dollar terms to HK $831 million. Retail sales increased by 2% in local currency terms on a year-on-year basis, due to improved logistics support, improved store supply, and strategic promotions during the Chinese New Year holiday and even in all Asian markets.


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