Home / Knowledge / News / Apparel/Garments / Esprit's operating profit surges 69.2% in FY'12
Esprit's operating profit surges 69.2% in FY'12
26
Sep '12
Esprit Holdings Limited, one of the world’s leading fashion brands, announced the annual results of the Company and its subsidiaries for the year ended 30 June 2012.

Profitability

The Group recorded a gross profit of HK$15,206 million (2011: HK$18,198 million) reflecting a gross profit margin of 50.4% (2011: 53.9%). A combination of higher input costs, increase in discounts and higher returns associated with the wholesale support initiatives, resulted in the decline in the gross profit margin. The Group deliberately decided to maintain its price points in order to preserve its price-value perception. The year-on-year decrease of the Group’s gross profit margin was narrowed to 2.1% points in the second half of the financial year.

The Group continued to maintain a strict focus on cost control. Despite Transformation Plan related expenses, operating expenses, excluding the effects of store closures and the divestment of North American operations, were down by 2.3%.

The Group recorded a 69.2% rise in operating profit (“EBIT”) to HK$1,171 million (2011: HK$692 million), reflecting an EBIT margin of 3.9% (2011: 2.0%).

The Group’s retail EBIT margin improved to 6.5% (2011: -5.4%), while the wholesale EBIT margin decreased to 17.7% (2011: 22.9%) as a result of the initiatives and support measures under the Transformation Plan.

The Group recorded an increase in net profit, to HK$873 million (2011: HK$79 million) and a net profit margin of 2.9%, up 2.7% points from 0.2% in FY10/11.

Commenting on the results, Mr. Thomas Tang, Esprit’s Group Chief Financial Officer, said, “As a result of the first year of the Transformation Plan, our operating profit in FY11/12 has grown despite the significant spending as part of the Transformation Plan and the challenging operating environment. Our collection is being invigorated and we are delivering an exciting new shopping experience in our refurbished stores. Together with the rest of the executive management team, we have laid the foundation for future growth and to enhance shareholders’ value.”

Click here to read more details:

Esprit Holdings Limited


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Gujarat hopes extended textile policy to attract Rs 5000 cr

The Gujarat government feels that its recent decision to extend its...

Apparel/Garments | On 26th Sep 2017

Cash burn by e-tailers in India may double during festivals

During this year’s festival season, which has already started,...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.0%
No
12.5%
Skip
12.5%

Total Votes: 48

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.5%
No
25.0%
Skip
12.5%

Total Votes: 48

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.5%
No
6.3%
Skip
6.3%

Total Votes: 48

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.8%
No
10.4%
Skip
18.8%

Total Votes: 48


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search