Esprit Holdings Ltd reported a profitable full-year performance on Tuesday, helped by exceptional gains from the sale of its Hong Kong office, a write-back in tax provisions and reduced operating costs.
The Europe-focused clothing retailer posted a net profit of HK$21 million ($2.7 million) for the 12 months ended in June, compared with a HK$3.70 billion net loss a year earlier. Turnover fell 8.4 percent from a year ago to HK$17.79 billion.
“While the road to recovery is still full of challenges, the progress we have made gives us much confidence that we are on the right path towards restoring the long-term competitiveness of the group,” Chairman Raymond Or said in a statement.
Esprit, which in July flagged a break-even in net income for the year ended in June, 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.
The company will continue to close loss-making retail stores and lower marketing and advertising expenditure in the year ahead, CEO Jose Manuel Martinez Gutierrez said in the statement.