Britain Off Europe, Europe's Prospects For Instability Esprit Germany Layoffs 10%

Holdings Ltd. 0330.HK, Ke Qinghui, today revealed at the shareholders' meeting that

Europe's prospects for major markets are unstable. This situation may last for a year and a half. The group will cut 10% of its staff in Germany to reduce operating costs and maintain profitability.

0330.HK has increased by 4.75% to HK $5.73 today.

Ke Qinghui pointed out that the proportion of the British Esprit Holdings Ltd., which is smaller than that of Europe, has little impact on the group. However, other countries hope that the possibility of Europe's political instability will be increased, and the euro will be devalued.

However, he said that the current euro exchange rate decreased slightly, which was in line with group expectations, and only dropped to 1 against the US dollar to 1. However, the group has already made short-term hedging against the euro.

Germany is the largest contribution to nearly half of the Esprit Holdings Ltd.

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Ke Qinghui said the group has reached an agreement with German trade unions and will lay off workers in the future.

In the face of the pressure of the appreciation of the US dollar on purchasing cost, the group will increase the proportion of purchasing 20% in Europe, and the other 70%.

It comes from Asia.

In addition, the group that has pformed the fast fashion mode is gradually reducing the number of entities and turning to e-commerce.

Ke Qinghui pointed out that Germany's e-commerce performance of the group was very good, and the sales proportion of the group was higher than the year-on-year level.

Statistics show that the Esprit Holdings Ltd. Ltd. has achieved a HK $4 billion 391 million gain in the three quarter of March 31st, a year-on-year decrease of 2.6% and a fixed exchange rate of 0.1%.

During the period, the main European markets were positive, the largest single market and the origin of the group, Germany's income increased by 0.9%, the fixed exchange rate increased by 2.7%, the income of other European markets increased by 1.8%, the fixed exchange rate increased by 4.3%, while the European market accounted for 84.2% of the total market share.

As the group has been streamlining its stores in the past two years, the total sales volume of the three quarter has been reduced by 9.6%, so its basically flat sales decline has also been relatively better. The group said it reflected the significant improvement of product performance and improvement in marketing and channel operation.

However, the company said improvements were still offset by weak wholesale channels and negative developments in the Asia Pacific region.

Asia Pacific market plunged 19.7% to HK $667 million in the three quarter and a 15.3% decline at the fixed exchange rate.

According to the fixed exchange rate, the same quarter sales (including the electricity supplier) increased by 10.3% in the three quarter, continuing the positive growth trend in the past few months.

Of which, HK $984 million online income, accounting for 35.4% of group retail revenue, increased by 11.7% on fixed exchange rate.

On Monday 27, Monday, Bank of America Merrill Lynch (NYSE:BAC), Merrill Lynch, lowered its target price to 5 Hong Kong dollars, which set a 12 year low of HK $5.34 yesterday.

The bank believes that Esprit Holdings Ltd. is the largest in Europe, but its profit outlook is declining.

The stock closed up 3.29% to HK $5.65 all day on Tuesday.