FRANKFURT Dec 1 Troubled fashion retailer
Esprit Holdings hopes to put an end to its losses as
soon as next year, Chief Executive Jose Manuel Martinez told a
German Sunday newspaper.
"I expect that we will soon - maybe even next year - no
longer be loss making," he said in an interview with the
Frankfurter Allgemeine Sonntagszeitung.
Esprit swung to a net loss of HK$4.39 billion ($566 million)
after revenue fell 14.1 percent to HK$25.9 billion in the fiscal
year to end-June 2013.
For the current 2013/14 fiscal year, Esprit has forecast a
further decline in turnover, partly due to store closures, but
expects cost cuts will help reduce its operating
expenses-to-sales ratio below 50 percent from just over 65
percent in the previous year.
"You cannot expect that after years of shrinking suddenly we
would grow by 10 percent, it doesn't work like that. Currently
we are doing everything in our power to stabilise the business
with growth then the next stage, in perhaps two or three years,"
said Martinez, who joined in September 2012.
Investors gave the CEO a vote of confidence when he was
appointed from Zara-owner Inditex last year, driving
Esprit's stock to its biggest one-day gain in 14 years.
($1 = 7.7527 Hong Kong dollars)
(Reporting by Christiaan Hetzner; Editing by Mark Potter)