Entity Store Was Hit By Esprit'S Brand Store Closing

In recent years, the development of Internet has become more and more fierce, and people's consumption patterns have slowly shifted to the Internet.

Esprit's brand has also been hit by online shopping, shutting down its physical stores.

Clothing brand

Its parent company, Si Jie global, recently released its 2015 annual earnings report. The company's total revenue in 2015 fell 3.1% to HK $1 billion 223 million 800 thousand, of which the gross profit of apparel supply chain business in 2015 was reduced by 3.1% to HK $132 million, while gross margin fell to 10.9%, down 0.4% from last year.

The company pointed out that a slight drop in the gross interest rate was due to the fall in the average price of clothing in 2015.

According to the earnings report, today's global shares fell slightly to HK $7.07 per share at the close of the morning, and the market value of the company is about 13 billion 700 million.

In addition, profits from clothing retail business plummeted 84.7% to HK $7 million 900 thousand in 2014.

The company noted that the reduction in revenue was due to the closure of the "Unisex brand" and "Promod brand" retail outlets by the end of May 2015.

The company expects the sales performance of the two brands will not improve in the short term, so it will terminate the operation early.

On the whole,

In 2015, net income, net cost and income tax expense were recorded at about HK $35 million 200 thousand, representing a decrease of about 11.1% compared with 2014.

In addition, the gross margin was reduced from 46.1% in 2014 to 26.6% in 2015, based on the company's sales promotion.

In order to balance the sluggish clothing retail business, Phoenix announced in December last year that it sold and rented the property of the existing Hongkong office to the independent third party, the Phoenix Property Investors, and estimated that it would sell non recurrent net profit of $725 million.

The proceeds will be used as general working capital, including any possible investment opportunities in the future.

The property involved includes 41, 43, 45, 47, 49, 16 floors and signboards of the 3 phase of corporate Plaza 39, Kowloon Bay. The selling price is $918 million.

When completed, the company will rent the 43, 45, 47 and 49 floors, 13 parking spaces and signboards of the building for six years, with a monthly rent of 2 million 430 thousand yuan in the first three years.

Sijie Global CEO Jose Manuel Martinez has said that the company is changing its strategy, has made good progress, but is still in pition mode.

Jose Manuel Martinez, a former Inditex group executive, believes that the fashion retail environment in Europe and Asia is still challenging.

Generally speaking, the world is going through a difficult stage.

At present, Esprit is going through a significant period.

Image and business mode change period.

Song Hye Kyo, a Korean pop star who has invited the recent surge of popularity, will be the new fashion spokesperson in 2016.