Brief: Esprit Reports FY Loss Attributable Of HK$3.99 Bln

Esprit Holdings

05/11/2020 23:52

Nov 6 (Reuters) - Esprit Holdings Ltd  0330.HK :
    * FY REVENUE FROM CONTINUING OPERATIONS HK$9,216 MILLION
VERSUS
HK$11,681 MILLION
    * CONVINCED THAT RESTRUCTURING IS NECESSARY TO RETURN
BUSINESS TO
PROFITABILITY IN FY21/22
    * GROUP EXPECTS A REDUCED PROFITABILITY WITHIN NEXT
FINANCIAL YEAR
    * FY LOSS ATTIBUTABLE HK$3,992 MILLION VERSUS LOSS OF
HK$2,144
MILLION
    * WILL FOCUS ON ITS KEY MARKETS AND DOWNSIZING OF BUSINESS
    * SHOULD GROUP BE UNABLE TO OPERATE AS A GOING CONCERN,
ADJUSTMENTS WOULD HAVE TO BE MADE TO REDUCE CARRYING VALUES OF
GROUP'S ASSETS
    * BY END OF NOV, FINAL DECISION WILL BE PASSED BY COURT TO
TERMINATE PROTECTIVE SHIELD PROCEEDINGS FOR SIX GERMAN UNITS
    * GROUP HAS CONTINUED WITH GLOBAL HEADCOUNT REDUCTION PLAN
    * IN PROCESS OF RE-NEGOTIATING CONTRACTS WITH SERVICE
PROVIDERS IN
ORDER TO OBTAIN MORE FAVORABLE TERMS AND FURTHER REDUCE COSTS
    * GROUP ESTIMATED TO BE RELIEVED OF DEBTS OF APPROXIMATELY
HK$1,852 MILLION
    * ALSO TESTING ITS NEW SALESFORCE E-COMMERCE PLATFORM, WHICH
IS
EXPECTED TO BE LAUNCHED IN Q1 OF 2021
    * IS IN PROCESS OF RE-NEGOTIATING CONTRACTS WITH ITS SERVICE
PROVIDERS
    * NOT POSSIBLE TO MAKE A COMPREHENSIVE QUANTITATIVE FORECAST
FOR
FY20/21

Source text for Eikon:  ID:nHKS5Tyklh 
Further company coverage:  0330.HK 

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