Esprit Is Too Late To Watch UNIQLO.

Esprit's brand Global Holdings Limited recently announced its net profit in the first half of fiscal 2015, which slumped 50.5% in the fiscal year ended December 31, 2014, down from HK $95 million to HK $47 million in the same period last year.

Insiders pointed out that despite the great determination of Si Jie's reform, at present, the road to recovery of Esprit is difficult.

In the first half of fiscal year,

The performance of its series of products is not satisfactory, of which Esprit women's wear, men's wear and EDC brand sales are down by 14.2%, 19.3% and 16.6% respectively.

Sales of other accessories such as accessories, children's clothing and so on have also declined.

According to the data released by Si Jie global, its turnover in the largest market in the Asia Pacific region, the Chinese market, has been reduced by 21.6%.

For reasons of poor performance, Si Jie said that sales revenue declined by 16.3% in the first half of fiscal year 2015, down from HK $12 billion 810 million to HK $10 billion 716 million in the first half of last year due to reduced sales space, abnormal European warm weather, China's return agreement and unfavorable exchange rate.

Insiders pointed out that the Esprit that was once very popular is on the decline. In addition to the impact of fast fashion brands and the reasons for the competition in network sales, there are also reasons for the company itself, including the lack of innovation in design.

"Esprit is getting ugly."

Ms. Wu can not help but sigh when she passes through Esprit stores.

To reverse

Declining trend, in September 2012, Sijie globe dug Ma Hao Si as chief executive officer from the Inditex group of ZARA's parent company, and launched a new 3 year pformation plan from 2014 to 2016, including saving HK $1 billion a year, and reducing operating expenses to at least 50%.

For this reason, Si Jie global has closed its stores in the Chinese market on a large scale, and resorted to shortening the shelf time of products and so on.

"It's too late to look at UNIQLO and ZARA now."

Some people have pointed out that the global pformation plan has been implemented for a year, but the effect is not obvious.

The bad news followed, HSBC's latest research report pointed out that

The depreciation of the Hong Kong dollar has been dragged down. It is expected that the loss will be HK $99 million this year, and the deficit in 2016 will be further expanded to HK $116 million.

HSBC sharply reduced the investment rating of SST and lowered its target price from HK $17 to HK $9.3 to HK $45%.

Si Jie Global Holdings said that the performance in the second half of 2015 is still full of uncertainty because it will start implementing the new vertical mode, and it is expected that the sales performance will be more volatile, and most of the market environment is already very grim. If the euro continues to depreciate, it will affect the performance of the Hong Kong dollar.

In addition, the group will be vigilant in controlling costs and reducing expenses, and will continue to close some of the shops that are losing money.