Esprit The Road To Performance Rescue Is Hard To Go.

In fact, Esprit's performance has been weak for some time. Zara, H&M, UNIQLO and other fast fashion brands have basically become the main choice of Chinese young people.

Last year, Zara's top Jose Manuel Martinez Gutierrez came into Esprit and carried out reforms. The market once had a round of pursuit for it, but after half a year's operation, the turnover still fell by 6%, so it can only reduce the cost through large-scale clearance, and finally turn the profit.

And this year it may still be a loss.

Basically no longer in the Esprit list of young people's fashion brand choice list.

This shows a further deterioration of this situation.

The company, which is based in Hongkong and listed here, has recently issued an early warning for losses in the current fiscal year.

In fiscal year 2013-2014, Esprit's revenue in Asia's most important Chinese market fell by 28.3%, and in the first half of this year, the figure has reached 21.6%.

Due to poor performance in China, Esprit's current season

It has dropped to its lowest level since 2001.

On the 19 of this month, Esprit suffered from the turmoil in the stock market.

The previous day's closing of HK $6.83 fell by 3.6% to HK $6.74 per share, and the highest share price last year was HK $9.4.

In addition to the Chinese market, it takes up

The total sales volume of 84%, which is dominated by Germany, Belgium and Holland, is also not optimistic. The unusual warm weather has led to a lot of unsalable products in autumn and winter, and dealers have to attract consumers through discounts.

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In the 2014 fiscal year, AEO's net income fell by 1%, and its sales decreased by 5% compared with the same period last year.

In order to improve its performance, in the autumn, the company launched the Don't Ask Why brand, mainly including the bare umbilical jacket, loose skirt, high waist shorts and soft pure color loose sweater, hoping to increase the consumption of young people.

At present, this strategy has worked.

In May 20th, AEO announced the first quarter quarterly report of the 2015 fiscal year, its net income increased by 8%, and sales increased by 7% over the same period.

The launch of "Don't Ask Why" is also aimed at coping with the impact of Brandy Melville, a new rival.

The styles of the two brands are very similar.

Italy brand Brandy Melville has entered the US market in the past five years. With its relaxed and simple style, it has become the first brand of American teenage women's wear.

"We are trying to make this brand reflect the trend of girls' dress.

In recent years, a comfortable knitted dress has been popular. We have established a long-term cooperative relationship with the Italy cooperation partners, providing cloth and some garments for each other.

We will also send teams to Italy to assist them in their work.

Chad Kessler, President of AEO company, said in an interview with Racked website.

Carter Harrison, a retail analyst, believes that AEO is in line with the needs of consumers. It can better compete with brands such as Forever21 and Zara through developing a simple fashion brand.

Although the brand needs further improvement, it can not be denied that the company has made a big step towards the right direction of development.

AEO has also increased its investment in social media such as Instagram to better contact key customers, enhance interaction, understand and meet consumer needs.

The launch of the "Don't Ask Why" brand has also been questioned and dissatisfied with some people. They believe that the brand's clothing size is single and has the tendency to convey inferiority awareness and body discrimination to women.

But for American Eagle, a single size means "fast". A style with a single size can be put into production only by a fitting procedure, which saves the tedious fitting process and enables the design to be realized faster.

At present, only 50 American Eagle stores sell "Don't Ask Why" clothing, and customers can also buy the brand online.

AEO said the brand is still in the experimental stage. If the feedback is enthusiastic, it will consider setting up an independent brand store for the brand.