Germany's Esprit likely to post HK$13 mn profit in first half

The group is expected to record total revenue of approximately HK$3,626 million for the interim period, as compared to the total revenue of approximately HK$3,872 million for the corresponding period, representing a decrease of approximately 6 per cent. The decrease in revenue was primarily due to the depreciation of the Euro against the Hong Kong dollar. If the revenue for the interim period were to be translated by the exchange rate for the corresponding period, the revenue would be HK$3,934 million which would have been an increase of approximately 2 per cent from the corresponding period, the group said in a press release.

With effects of actual exchange rates in the interim period, the group faced a decrease in profit in the interim period in comparison to the corresponding period due to the decrease in revenue resulting in the corresponding drop of approximately HK$156 million in gross profit; and the increase in other costs which mainly included foreign exchange translation loss of approximately HK$99 million for the interim period as compared to foreign exchange translation gain of approximately HK$87 million for the corresponding period.

Through the remainder of the year, the group will continue to focus on initiatives to drive sales, enhance operational efficiency, improve inventory and receivable management, paying particular attention to the fading effects of the pandemic and optimise the cost structure in order to improve the overall performance of the business.

Fibre2Fashion News Desk (RR)