By
Reuters
Published
May 7, 2013
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Esprit warns on second half profit and will close stores

By
Reuters
Published
May 7, 2013

The Europe-focused clothing and accessories retailer said it would record a goodwill impairment of between HK$1.8 billion to HK$2 billion related to the acquisition of the remaining interests of associated companies in China.


Esprit also said it would close around 16 loss-making stores, incurring an estimated cost of HK$250 million to HK$300 million.

The company's financial year ends on June 30.

Esprit in February reported a far steeper-than-expected loss for the six-months ended December as the economic gloom in Europe slashed sales, and its new chief said the next six months were likely to be just as grim.

The retail sector has been weighed down by high inventories and slack demand in a slowing global economy.

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