Si Jie Global Forecast That The Epidemic Will Have Significant Losses For The Second Half Of Fiscal Year.

Recently, the fashion brand Esprit parent company announced that the group had a major loss in the second half of the 2019/2020 fiscal year ending June 30, 2020 due to the global pandemic of the new coronavirus.

Si Jie global said that due to the epidemic restrictions on public activities, France, Italy, Spain, Poland, Austria and other countries closed a large number of shops. At present, clothing retailing is at a very low level, and the volume of outlets that the retail outlets and partners of the group can control the sales outlets have been completely reduced. In addition, the logistics of transporting goods supply chain has also been greatly affected.

　　 Esprit's brand restructuring is hard to suppress and it is a joint venture with Mu Shang Group.

Esprit is the domestic fast fashion enlightenment brand, has also been in the market is extremely beautiful, but from 2009 began to suffer revenue decline, from then on. In order to curb brand decline, Esprit announced the restructuring plan at the end of 2018.

But the restructuring did not take too long. Then Esprit joined the GXG parent company, mosang group, in December 2019 to form a joint venture. The registered capital of the joint venture shall be RMB 100 million yuan. The group has invested 60 million yuan in the registered capital of the joint venture company, will hold 60% of the joint venture's rights and interests, and Affiliated Companies's Wancheng resources, which is wholly owned by Si Jie global, will invest 40 million yuan in the registered capital of the joint venture company, and will have a 40% stake in the joint venture company.

The three board members of the joint venture are nominated by the mohsun group, and the most important directors and managers are nominated by the mohsun group. This move means that the future development of Esprit brand in the mainland of China will be fully taken over by the mohsun group.

Mohon group co founder and CEO Yu Yong, in an interview with the media, said that the design and channel of Esprit will be reshaped by the mohsun group, because the transformation of the brand in the past was basically successful at the end, and the mohsun group will reshape the existing brand positioning, channels and goods of Esprit.

Although the joint-venture company has not yet been established, as of the first half of December 31, 2019, in the 2019 fiscal year of the first half of the year, Si Jie global made the performance reversed by matching the group's brand behavior strategy, and the group net profit loss was 331 million yuan, down 81.3% from last year, and the income reached 5 billion 763 million yuan, down 11.8% from the same period last year.

Facing the sudden emergence of a new crown disease, a slightly improved Si Jie universe will inevitably receive a shock. For this reason, Si said that it will take all practical measures to deal with difficulties, including the implementation of working capital management and cost control measures, and seeking financial support from local governments.