Esprit Rises Most in Six Weeks After Beating EstimatesBloomberg News
Esprit Holdings Ltd. climbed the most in six weeks after the Hong Kong-based clothing retailer reported full-year earnings that beat analyst estimates and forecast a better profit margin.
Esprit posted net income of HK$210 million ($27 million) for the year to June 30, turning around from a loss of HK$4.4 billion a year earlier, the company announced today. That compared with HK$151 million, the median of 10 analysts’ estimates compiled by Bloomberg.
Shares of Esprit rose 2.7 percent, the most since Aug. 11, to HK$12.74 at the close in Hong Kong trading. The benchmark Hang Seng Index declined 0.5 percent.
“We begin the new financial year in a stronger position,” Esprit, which sells casual knitwear and jeans, said in a statement to the Hong Kong Stock Exchange. Gross profit margin is expected to “increase slightly” in the fiscal year that started July as the company improves its supply-chain management, Esprit said.
Total sales, which consisted of retail, wholesale and licensing revenue, fell 7 percent to HK$24.2 billion, as it closed unprofitable retail stores and reduced its wholesale customer base, the company reported.
— With assistance by Liza Lin