HONG KONG Shares in clothing retailer Esprit Holdings Ltd (0330.HK) were set to open down 6.6 percent on Wednesday after it warned of 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 after the market closed on Tuesday that 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.
The company also said it would close around 16 loss-making stores, incurring an estimated cost of HK$250 million to HK$300 million.
Shares of Esprit, which sells everything from bed sheets to jeans, were set to open down HK$0.72 at HK$10.18, lagging a 0.7 percent gain on the blue chip Hang Seng Index .HSI.
(Reporting By Yimou Lee; Editing by Anne Marie Roantree)