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    Esprit Parent Company Will Enter Hongkong Shopping Center.

    2016/12/7 14:14:00 38

    EspritHongkongRetail Market

    For the recent heated referendum on the constitutional reform of Italy, the group said that although the business in Italy was relatively small, the political instability in the local area, if the euro weakened, would bring pressure on the group's book numbers, but it would not affect the business.

    In addition, the group is

    European business

    The sales performance has been volatile. Most of them are trapped in weather factors. Now they are closing down poorly managed shops, so the sales area has declined, which has put pressure on the turnover. However, the group emphasizes that the sales performance of the European scale is improving step by step, and the whole European business is stable.

    Ke Qinghui, chairman of Si Jie global group, revealed at the shareholders' meeting recently.

    Retail in Hongkong

    It has weathered the worst, but has not entered a recovery stage that can be substantially improved.

    He pointed out that the group has two to three shops in Hongkong that need to be renewed in the future, including the branches of Beijing road and Tongluowan in Tsim Sha Tsui, and expect to get a bigger rent reduction. The group will also look for new stores to open new stores and hope to enter large shopping malls such as Tai Koo Shing and IFC.

    For the recent heated referendum on the constitutional reform of Italy, the group said that although the business in Italy was relatively small, the political instability in the local area, if the euro weakened, would bring pressure on the group's book numbers, but it would not affect the business.

    In addition, the sales performance of the group in Europe has been increasing. Most of them are trapped in weather factors.

    Sales area

    The decline has put pressure on turnover, but the group's emphasis on sales per square foot in European business is gradually improving, and the European business as a whole is stable.

    The group has hedged against the euro, believing that the euro's exchange rate fluctuations this year will have little effect on the group.

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    Compared to the same period last year, the first quarter revenue recorded a 0.4% decline, now the global income is declining.

    Faced with a sharp decline in revenue, the group explained that Esprit was actively reducing the retail area and accelerating the closure of the loss shop.

    In addition to the negative impact of closing stores on revenue, Si Jie pointed out that the abnormal and warm weather in Europe also caused unfavorable factors to sales. Since mid August, the temperature in Europe has been much higher than that in the same period last year. This abnormal and warm weather has a significant impact on the volume of shops and the early sale of autumn series under the offline and online retail business.

    Imitation of Zara is also unable to recede recession, and clothing brand Esprit is hard to get back.

    Its parent company, SG global, has just made a profit in the last fiscal year, and its performance in the first quarter of the new fiscal year has been battered again. As of the end of September, the total revenue in the first quarter of fiscal year was 4 billion 112 million yuan, down 11.8% from the same period last year. The total controllable sales area dropped by 14.5% over the same period last year. The 9240 square meter retail net sales area has been closed during the first quarter, mainly in China's special stores.

    As for wholesale, group income fell by 11.4% in local currency terms.

    The group pointed out that due to the structural pressure of the channel, the wholesale controllable area will be further reduced by 16.7% to 343 thousand and 400 square meters during the period, including the Asian Pacific area in the Chinese market, the total disaster area, and the net sales area by 41.5%.

    Compared to the same period last year, the first quarter revenue recorded a 0.4% decline, now the global income is declining.

    Faced with a sharp decline in revenue, the group explained that Esprit was actively reducing the retail area and accelerating the closure of the loss shop.

    In addition to the negative impact of closing stores on revenue, Si Jie pointed out that the abnormal and warm weather in Europe also caused unfavorable factors to sales. Since mid August, the temperature in Europe has been much higher than that in the same period last year. This abnormal and warm weather has a significant impact on the volume of shops and the early sale of autumn series under the offline and online retail business.

    It is noteworthy that the German market, which accounts for half of the group's main business revenue, is worrying. According to the TextilWirtschaft report, the German clothing market is experiencing negative growth, which will bring difficult challenges to the group's revenue growth. In order to reduce costs, the group said earlier that the German trade union agreement would lay off 10%.

    In the Asia Pacific region, the decline in sales was mainly affected by the drop in consumer traffic in the region, which said earlier that the Asia Pacific region's performance was relatively weak because of the reduced willingness of Chinese consumers to buy, thereby affecting sales performance.

    According to I.T, a multi brand fashion retailer listed in Hongkong, China's millennials are abandoning popular brands to fight independent brands. In the first half of this year, I.T recorded a 14% strong growth in retail sales in the mainland of China.

    As the "bellwether" of the domestic clothing brand, Esprit is deeply in the mire of performance. In fact, the main business of Si Jie world has been in a state of continuous loss in recent years. It has chosen to sell the Hongkong office, constantly shut down stores and lay off staff and so on.

    Analysts predict that Esprit is still in a difficult pition.

    Jose Manuel Martinez, the chief executive of Inditex, an executive at ZARA's parent company, pointed out that retail sales are still facing two important problems in wholesale channels and the Asia Pacific region.

    In September, Bank of America, Merrill Lynch released a report that even if Esprit retail sales improved, the steady growth of online business and cost control, the recovery of Esprit brand was still rugged, mainly due to the structural challenges of wholesale and Asia Pacific business, and the negative impact of Europe's macroeconomic instability.

    Some analysts pointed out that the high price plus frequent discount sales, the image of Esprit has fallen sharply in recent years, has long been reduced to the basic brand that consumers will only buy during the discount period. Consumers who had the most consumption power and consumption desire have been gradually away from this brand. In addition to copying the Zara supply chain mode, the group should consider how to make Esprit young again. This is the top priority of the group.

    For more information, please pay attention to the world clothing shoes and hats net report.

     

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