Hong Kong retailer Esprit has completed the exit of its retail operations in North America. Now it’s looking to its new Lighthouse generation store profile to build growth in other markerts. 

Esprit’s comparable store sales growth improved to positive 0.5 per cent in the third quarter to March 31, led by positive 2.8 per cent retail comparable store sales increase in Europe. Its net cash position increased to HK$1618 million (US$208.43 million), well up on last year’s HK$1055 million (US$135.90 million).

Improved sales were also attributed to new TV campaign featuring ambassador Gisele Bündchen, which was introduced in Germany, Belgium, Netherlands, France and China.

In an effort to sharpen its brand, Esprit is working on a transformation plan for 2014 to 2015.

The first ‘Lighthouse’ generation store concept in Cologne continues to show considerable year-on-year improvement. Building on this successful launch, 14 existing directly managed retail stores were selected for further roll-out in the second half of the financial year, out of which, five had already undergone refurbishment and were re-opened in Amsterdam, Antwerp, Den Haag, Vienna and Hamburg.

The China design centre and the Trend division are progressing according to plan and will deliver first collections in stores in August and September respectively.

Its plan to exit the retail operation in North America has been completed. All retail stores in North America were closed as at 31 March, except one in the US, which closed last month. The successful exit of North American retail operations resulted in net write-down of approximately HK$700 million (US$90.17 million).

“The trading statement is on balance better than I expected. Esprit has made a good start in its transformation plan,” said Anne Critchlow, analyst at Societe Generale in London.

GB