HONG KONGEsprit Holdings expects to see a “modest decline” in revenue for the coming fiscal year, it said Wednesday, although it was able to book a profit for the year ended June 30 of $67 million Hong Kong dollars ($8.6 million).

That improved on the $21 million Hong Kong dollars it profited the same period a year ago. Revenue for the year amounted to $15.94 billion Hong Kong dollars, representing a year-over-year decline of 8.7 percent, in line with the corresponding year-over-year reduction in total controlled space of 8.5 percent.

Overall, management called the year one of “good progress” in stabilizing the group financially although its turnaround process is still several years in the making. The brand continues to shut loss-making stores, putting pressure on the topline, although that is slightly offset by slight growth in the gross profit margin and fewer operating expenses. Gross profit margin for the year ended June 30 grew 1.4 percentage points to 51 percent.

“As a result of our team’s intensive efforts, we successfully achieved reduction of operating costs this year by $1 billion Hong Kong dollars, one year ahead of targeted schedule,” said chief financial officer Thomas Tang. “We aim to leverage our reduced cost base to further improve our profitability in the future.”

Esprit operates in 40 countries through 660 directly managed retail stores and more than 6,000 wholesale accounts.