Esprit Holdings Limited said Monday it expects to break even on a net level for fiscal year 2015-2016, thanks to a series of one-off gains from tax benefits and the sale of the company’s Hong Kong office. The company is undergoing a major revamp of both its image and business model under the leadership of Jose Manuel Martinez, Esprit’s chief executive officer and a former executive at Inditex.

Esprit said it plans to post exceptional gains of 1.34 billion Hong Kong dollars, or $172.78 million, for the year. At the same time, it said it will sustain a series of one-off costs such as staff reduction and the closure some loss-making stores in China, hit by the economic slowdown.

CLSA senior investment analyst Mariana Kou is predicting that Esprit will post a full-year net profit of 246 million Hong Kong dollars, or $31.72 million. Esprit posted a net loss of 3.68 billion Hong Kong dollars, or $477.41 million, for the year ended June 30, 2015.

On an operating level, Esprit said it expects to outperform the market consensus for a full-year loss before interest, tax and non-recurring items of $736.8 million Hong Kong dollars, or $95 million.

Esprit posted a loss for the first six months of the year as it spent more on marking and branding efforts and saw lower sales on a weak euro to Hong Kong dollar exchange rate.

The company, which is listed on the Hong Kong stock exchange, is due to report full-year numbers in September.