Fashion United: Esprit Holdings Ltd posted a 74 percent fall in first-half net profit. However, results were better than expected, what lifted the retailer’s shares to a record price for the past 4 months. "Going to the second half of the financial year, we will continue the rigorous and systematic implementation of our Transformation Plan in a continued challenging business environment," Esprit said in a filing to the
Hong Kong bourse. The company said its plans to re-establish Esprit as a leading fashion brand and restore long-term profitability were on track, despite the continued difficult economic climate. Esprit rose as much as 12 percent to HK$15.90, the biggest intraday gain since Oct. 13, before trading at HK$15.66 at 1:57 p.m. local time, reported local press. The stock fell 3.5 percent in morning trading, before it reported first-half earnings. Operating profit margin was 4.7 percent, above the expected full-year number of 1 percent to 2 percent, the company said in a statement to Hong Kong’s stock exchange today. Net income was HK$555 million ($72 million) in the six months ended Dec. 31, compared with HK$2.14 billion a year earlier. “Many people were thinking it would make a loss but it came out with a net profit,” said for Bloomberg Andrew Sullivan, Principal Sales Trading at PiperJaffray Asia Securities Ltd. in Hong Kong. “It also sounds more positive. The company is well- positioned to make progress in restructuring despite the tough operating environment.” Read Full: Esprit shares rocket after posting 74% net profit fall - Fashion - news - Fashion News India, jobs, network, apparel, business
