Fashion company Esprit Holdings expects to break even in terms of net income for its latest financial year following a preliminary review of its unaudited accounts.
Esprit attributes its expectations to a combination of three major elements…
- The financial result of its underlying operations is better than the LBIT (loss before interest and tax) of HK$736.8 million (US$95 million) expected, excluding exceptional non-recurring expenses and net gains.
- Exceptional non-recurring expenses, related to an acceleration of cost-restructuring measures including the closure of loss-making stores in China, Hong Kong and Macau, estimated to be in the range of HK$210 million to HK$230 million.
- Exceptional net gains of about HK$1337 million from the sale of the Hong Kong office premises, a write-back of tax provisions, and a taxation credit.
Esprit expects its final results for the year ended June 30 will be released in September.
