Esprit Holdings has projected lower net loss for the first half as the result of the restructuring of its business.

The Hong Kong-listed fashion retailer expects to record an unaudited net loss of HK$95 million (US$12.2 million) for the six months ended June 30, a significant reduction from HK$714 million in the prior-year period.

The company attributed the improvement to a one-off gain of approximately HK$3.651 billion from the restructuring and deconsolidation of its European subsidiaries.

The gain was partially offset by impairments on trademarks, assets and equipment, as well as provisions for inventories and impairment of trade debtors.

The company noted that the forecast was based on the preliminary review of the unaudited consolidated management accounts and other available information. The actual results may be subject to further amendments and adjustments where necessary.