Clothing chain Esprit has sent out a profit alert after it had weaker results both in China and Europe. Those will lead to a loss in its broken fiscal year, which ends in June.
Warm weather is the culprit
Esprit's Chinese turnover drop grew up to double-digit numbers, forcing the chain to write off 300 million euro. Its European performance is also lackluster: a warm autumn has led to weak sales for the fall and winter collections. The company also had to deal with an onerous year two years ago, but it made up for that last year, but it seems Esprit has not been able to turn the tide completely.
CEO Jose Manuel Martinez does mention the company is debt-free and that the future looks bright for the company which will soon celebrate its 50th birthday. Esprit currently sells its own collections and licensed collections through its own store network, which consists of some 1,000 stores in more than 40 countries.