HK-listed Esprit falls on restructuring, job cut plans

Esprit Holdings

27/11/2018 02:48

** Shares of Esprit Holdings Ltd  0330.HK  fall as much as
6.2 pct to HK$1.96, the lowest since Nov. 20, after the fashion
group says it is to cut jobs and close loss-making stores 
    ** The stock later trims losses to HK$1.995, still down 4.3
pct, and heading for the worst day since Oct. 11
    ** Esprit says it will cut about 40 pct of its non-store
jobs and reduce the number of products its sells in stores as it
restructures in the wake of tough competition from online and
fast-fashion retailers  urn:newsml:reuters.com:*:nL4N1Y14D5 
    ** It targets annualised expense savings of HK$2 bln 
($255.7 mln) effective FY19/20 mainly from restructuring of the
organisation and closure of loss-making stores, and it aims to
return to revenue growth in FY20/21  urn:newsml:reuters.com:*:nFWN1Y10HB
    ** Esprit expects EBIT to break even in 2-3 years time and
improve gradually to 5-7 pct by FY22/23 (https://bit.ly/2RbQaKF)
    ** As of he last close, the stock has fallen 50 pct so far
this year

    


($1 = 7.8226 Hong Kong dollars)

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