Translated by
Jennifer Braun
Published
May 1, 2016
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Esprit's Europe business rebounds

Translated by
Jennifer Braun
Published
May 1, 2016

Esprit is experiencing a feverish recovery. According to its provisional results, the brand's third-quarter total sales, which started January 1, declined by 2.6 percent to 4.4 billion Hong Kong dollars (495 million euros). At a constant exchange rate basis, they are stable.

Esprit revealed for the first time business numbers from its e-commerce efforts.


However, the retailer is enjoying better results in Europe, despite the fact that January to March was marked by a terrorist attack and a soft winter. In Germany, in store and online sales were up by 6 percent on a constant exchange rate basis and reached 1.2 billion Hong Kong dollars. In other European countries (the number of stores dropped from 187 to 149), sales jumped 14 percent to 918 million. This stronger performance can be attributed to retailer's efforts to optimize its store network and e-commerce over the last three years.

For the first time, Esprit is is excelling in online sales, including its retail business. In fact, its e-commerce efforts make up more then one third of the brand's retail sales, with activity up by 12 percent. Still in the end, Esprit relief was short lived on a constant exchange rate basis. Worldwide retail sales climbed 10.3 percent in its third quarter, compared to 8 percent in its second quarter. However, the brand did suffer a drop of 2.4 percent in its first quarter and a drop of 10 percent in the fourth quarter of its 2014/2015 financial year.

Even though the loss is much smaller than previously, its wholesale division is underperforming compared to retail. In Germany, sales among retailers, franchises and other stores dropped 2.2 percent in the last quarter and six percent across the rest of Europe. Asia Pacific is still Esprit’s most complicated zone. Turnover dropped close to 20 percent and 15.3 percent at a constant exchange rate basis.
 
In total, from July 2015 to March 2016, Esprit sales drop by 10 percent to 13.7 billion (1.5 billion euros) and remains stable at a constant exchange rate. 

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