HONG KONG — Esprit Holdings said Friday that its revenue for the nine-months ended March 31 slid 10 percent to 13.71 billion Hong Kong dollars but trading conditions in its core market of Europe are showing signs of improvement.
The company said nine-month sales inched down 0.3 percent in local currency.
Sales in Germany and the rest of Europe, Esprit’s two biggest markets, fell 8.9 percent and 9.2 percent over the nine-month period. Revenue in Asia-Pacific fell 15 percent and that in North America fell 6.8 percent.
But there are indications that business is improving for Esprit — at least in Europe. As reported, the Hong Kong-based retailer is in the process of revamping its image and streamlining its product development and distribution channels. The company is moving towards a vertical production model, similar to that of Inditex’s Zara, and shuttering underperforming stores as it ramps up its e-commerce efforts. Esprit posted a first-half loss and saw sales fall on a weaker euro.
In terms of the third quarter alone, sales in Germany and the rest of Europe rose 0.9 percent and 1.8 percent. But sales in Asia and North America continued to show a negative trend. In the third quarter, they fell 19.7 percent and 8.2 percent respectively.
“Overall, the continuation of the positive trend in our retail sales performance keeps reinforcing our confidence that the strategic changes in our product…and channels management…are the right path to restoring the upside potential of the Esprit brand and the long-term competitiveness of our Group,” the company said.