Esprit Rises Most in Three Months After Naming New Design Chief From Puma
Esprit Rises After Posting Better-Than-Expected Margin
Akos Stiller/Bloomberg
A pedestrian passes the window of an Esprit Holdings Ltd. store advertising price discounts in Budapest, Hungary, on Saturday, Jan. 7, 2012.
A pedestrian passes the window of an Esprit Holdings Ltd. store advertising price discounts in Budapest, Hungary, on Saturday, Jan. 7, 2012. Photographer: Akos Stiller/Bloomberg
Esprit Holdings Ltd. (330), a clothing retailer that lost 73 percent of market value last year, rose the most in three weeks in Hong Kong trading after naming a former Puma AG executive to run product development and design.
The apparel retailer climbed 4.4 percent to HK$10.86 at close, its biggest gain since Dec. 16. Esprit, the Hang Seng Index’s biggest loser in 2011, has soared 8.4 percent so far this year, outperforming a 3.1 percent rise for the benchmark.
Melody Harris-Jensbach will take the role of chief product and design officer at Esprit starting Jan. 9, the company said in a statement yesterday. Her hiring follows that of Holly Li, Adidas’s general manager for north China, as Esprit’s China chief executive officer, amid a push to revive earnings at the retailer that in September said its brand had “lost its soul.”
Esprit, which made 79 percent of revenue out of Europe, faces declining sales and greater competition from rivals including Hennes & Mauritz AB and Inditex SA’s Zara. Chief Executive Officer Ronald Van der Vis has said he plans to turn the company around by improving fashion designs to revive earnings in Europe while doubling China sales in four years.
“The appointment is certainly positive in the long run, yet the effects are not likely to be seen until the next fiscal year,” Vineet Sharma, an analyst at Barclays Capital Inc., said in a telephone interview today.
Esprit isn’t aware of any reason for the rise in the stock price and said there are no negotiations related to intended acquisitions, the company said in a stock exchange filing today.
Harris-Jensbach is joining Esprit from Puma AG where she acted as deputy CEO and chief product officer since January 2008, the company said. From 1998 until 2007, Harris-Jensbach held senior management positions within Esprit, according to the statement.
Li is scheduled to take over as China CEO on Feb. 1, Esprit said in a statement in November.
To contact the reporter on this story: Vinicy Chan in Hong Kong at Vchan91@bloomberg.net
To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net
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