A strategic plan is starting to yield results for Esprit, which is buoyant in its outlook despite a first-half loss weighted on by weakened demand in China.
Net loss for the Hong Kong-listed fashion retailer amounted to HKD238m (£22m) for the six months to 31 December, compared to a profit of HKD47m (£4.3m) in the same period the year before.
Esprit introduced a vertically integrated business model in its previous financial year, the same supply chain process used by high street giant Zara. Esprit said this, coupled with cost efficient product development, is enabling it to develop improved products in terms of design, quality and value-for money.
“The performance during the first six months of this financial year gives us confidence that the implementation of our vertical and omnichannel model is an effective basis to turnaround our business,” said CEO Jose Manuel Martinez.
“We remain confident that we are heading in the right direction and are laying the necessary foundation to restore competitiveness and long term growth for Esprit.”