HONG KONG May 7 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
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.
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(Reporting By Lawrence White; editing by Miral Fahmy)