HK-listed apparel group Esprit rises on cost reduction via staff cut, store closure

Esprit Holdings

02/07/2020 03:41

** Shares of apparel retailer Esprit Holdings Ltd  0330.HK 
rise as much as 8.3% to HK$0.91, their highest since June 26, on
track to end their four straight sessions of decline 
    ** The stock later trims gain to HK$0.88, still up 4.8%,
heading for biggest intraday pct gain since June 17 
    ** Co plans to cut 1,200 jobs globally and reduce salary and
benefits for non-store personnel 
    ** The reductions in workforce include 800 store employees
and 300 non-store employees in Germany, and 100 of its staff in
Hong Kong  urn:newsml:reuters.com:*:nFWN2E80ID
    ** Co says it has closed 56 retails stores in Asia outside
of mainland China so far and aims to close 50 stores in Germany
by end of November, which is about half of the stores it
operated in the country, as it streamlines business operations 
    ** Says the cost reduction measures will lead to an one-off
costs of HK$500 mln ($64.5 mln), which will affect its results
for the full financial year ending in June 2021
    ** As of last close, the stock had plunged 46.5% this year
    ** Esprit has outperformed the Hang Seng Commerce & Industry
Index sector  .HSNC  by 29.1 percentage points in the past one
month
    ** The Hong Kong benchmark index  .HSI  rises 1.7%


($1 = 7.7504 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)