Esprit has reported a net loss for the six months ended in December compared with a profit a year earlier. Turnover too has also fallen. The clothing retailer has been hurt by a slowdown in China and a weak euro. Esprit has been in the midst of an ambitious revamp over the past year that has included store closures, price adjustments, new return policies, and technology and distribution improvements.

Looking ahead into the second half of financial year 2015-’16, the company remains confident of heading in the right direction and is laying the necessary foundation to restore competitiveness and long term growth. Turnover at Esprit’s largest market, Germany, grew 1.5 per cent year on year in local currency terms. Retail turnover grew 8.6 per cent, while wholesale turnover declined 9.6 per cent. Gross profit margin remained unchanged at 50.5 per cent. The weakness in the euro, if it persists, is expected to put some pressure on the group’s gross profit margin.

Esprit earns the bulk of its revenues in Europe. It feels the operating environment appears challenging amid volatile financial markets and economic uncertainty that might dampen consumer sentiment. Esprit is based in the US. It offers a large selection of high quality fashions for men, women and children as well as the latest fashion accessories and furnishings.

www.esprit.com/