Espirit aims for sustainable growth, profitability in H2

Undertaken comprehensive assessment of the loss-making retail stores, Espirit has already executed net closure of 91 stores in the first half. The revenue for the period reduced 14.4 per cent in local currencies. Revenue from retail dropped 16 per cent, adversely impacted by strategic closure of unprofitable retail stores and lower consumer traffic. Wholesale revenue declined 15.9 per cent, due to lack of focus on wholesale partners in the past.

Focusing on rebuilding the iconic brand, the company completed consumer research of more than 10,000 people to identify strategic customer segments, their needs and motivations, translating insights into key business areas and is launching internal change process towards customer centric organisation.

For second half, the company projects low double-digit decline in revenue with pressure from closure of loss making stores and seasonality of the business. The gross profit margin is likely to be stable as the benefit from reducing markdowns and promotions, is expected to be offset by investment in improving product quality and a lower proportion of retail revenue. (RR)

Fibre2Fashion News Desk – India