Loss Continued Thinking Global Revenue Fell 2019 In Fiscal Year 16%

In October 15th, the ESPRIT parent Global Holdings Limited (SW global) released its annual report as of June 30, 2019. It said that in the 2019 fiscal year, the global revenue reached 12 billion 932 million Hong Kong dollars, down 16.3% from the same period last year, with a net loss of HK $2 billion 144 million and an increase of 16.1% in the same period.

According to the data, the 16.3% decline in global revenue fell because the euro weakened slightly against the Hong Kong dollar during the period. At the same time, the report said that during the reporting period, the global revenue declined, but the reduction continued to narrow in the quarter, which was mainly driven by the German market, and the region's revenue constituted the largest proportion of total revenue of the global capital. It is worth mentioning that the Asia Pacific region of Si Jie global has a negative trend in quarterly revenue, mainly due to the closure of the Australian new market.

In addition, during the period, Si Jie global gross margin reached 50.3%, down 1.1% from the same period last year. According to the announcement, the gross profit margin declined during the reporting period, mainly due to the clean up of old stocks by the strategic plan of the global strategy, which has been greatly improved in the second half of fiscal year 2019.

For the future development plan, Si Jie global said in its announcement that it expects to achieve a low double-digit percentage decline in revenue during fiscal year 2020. In terms of gross margins, the plan aims to achieve a modest growth in gross margins through reducing discounts while maintaining retail price stability. In terms of regular operating expenses, due to the annual effect of cost restructuring measures and the further reduction of the expenditure on shops, the global financial year is expected to decrease by a high percentage per unit in fiscal year 2020, but some of the benefits will be offset by the necessary investments for future development, including e-commerce, information technology and market promotion.