Esprit Holdings warns on H2 profit, to close stores
HONG KONG May 7 (Reuters) - Esprit Holdings Ltd said on Wednesday that it would record a substantial second-half loss due to soaring costs related to store closures and acquisitions in China.
The Europe-focused clothing and accessories retailer said it would record a goodwill impairment of between HK$1.8 billion to HK$2 billion related to the acquisition of the remaining interests of associated companies in China.
Esprit also said it would close around 16 loss-making stores, incurring an estimated cost of HK$250 million to HK$300 million.
The company's financial year ends on June 30.
Esprit in February reported a far steeper-than-expected loss for the six-months ended December as the economic gloom in Europe slashed sales, and its new chief said the next six months were likely to be just as grim.
The retail sector has been weighed down by high inventories and slack demand in a slowing global economy.