Esprit to cut jobs, products as part of turnaround plan

Esprit Holdings

26/11/2018 15:48

Nov 26 (Reuters) - Esprit Holdings Ltd  0330.HK  will cut
about 40 percent of its non-store jobs and reduce the number of
products its sells in stores as the fashion group restructures
in the wake of tough competition from online and fast-fashion
retailers.
    The company said it plans to reduce the line of products by
up to 30 percent and push for more neutral colours, such as
black, white, grey and beige for clothing.
    "Esprit has changed maybe too much ... And we don't know
what we stand for," the Europe-focused retailer said in an
investor presentation on Monday. "We've lost touch with our
audience."
    Esprit, founded in 1968, said the restructuring is expected
to cost HK$1.5 billion to HK$1.7 billion ($191.72 million-
$217.29 million) in the 2018-2019 financial year amid a broader
move to close stores that are losing money.
    The company, whose stock has nearly halved in value so far
this year, employed over 6,400 full-time staff as of June 30,
but did not specify how many were non-store employees.
  ($1 = 7.8238 Hong Kong dollars)

 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Anil D'Silva)
 ((NikhilKurian.Nainan@thomsonreuters.com; +91 806 749 1637;
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