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Esprit to Close Loss-Making Operations in Australia and New Zealand

The fashion group will focus on concentrating resources in developing Asian markets in China, Hong Kong, Taiwan, Singapore and Malaysia.
Esprit Headquarters in Germany | Source: Shutterstock
By
  • Reuters

HONG KONG, China — Fashion group Esprit Holdings Ltd said on Thursday it plans to shut its loss-making operations in Australia and New Zealand, concentrating resources in developing Asian markets in China, Hong Kong, Taiwan, Singapore and Malaysia.

The Europe-focused apparel retailer said it will close 67 directly managed retail stores in the two countries that contributed HK$297 million (£27.8 million) of revenue in the fiscal year to end-June 2017, less than two percent of its total revenue. It gave no further details.

Esprit, which has a market capitalisation of $659 million (£485 million), said the divestment would result in up to HK$200 million in one-off costs from provisions for store closures and the impairment of store assets, and would have a "negative impact" on its results for the year to June 2018.

The retailer on Wednesday posted an 11 percent drop in 9-month revenue.

By Donny Kwok; editor: Richard Pullin.

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