Esprit sends out profit alert | RetailDetail

Esprit sends out profit alert

Esprit sends out profit alert

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.

Questions or comments? Please feel free to contact the editors


Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is still strongest global brands, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

HelloFresh increases turnover forecast

14/05/2018

Mealbox delivery service HelloFresh has increased its 2018 forecast: the German company now expects a 35 % growth, up from its previous 30 % increase forecast. Positive results in the United States, which has become the company’s main market, were the main reason for its adjustment.

Brussels bio chain Färm keeps expanding

14/05/2018

Färm, a bio store chain from Brussels, is supporting a planned expansion with a crowd funding campaign. The chain aims to open its biggest store so far in the North of the European capital, extending its services with a bakery in the store. 

More profit from smaller volumes for AB InBev

09/05/2018

Despite AB InBev’s beer sales dropping 0.2 % in the first quarter, the Belgian-Brazilian beer giant did generate a turnover increase and a gross profit above expectations.

Ahold Delhaize mainly grows online

09/05/2018

Belgian-Dutch merger group Ahold Delhaize has had a decent first quarter, thanks to a Belgian turnaround, a good performance in the United States and strong online growth. Unfavourable exchange rates did spoil the party somewhat.