The benchmark Hong Kong index Canada Goose Online closed up 1

The benchmark Hong Kong index Canada Goose Online closed up 1

Esprit seeks to reassure with profit forecast

HONG KONG, Sept 10 (Reuters) Esprit Holdings will return to profit canada goose clearance this year on cost cutting and adequate provisions, its CEO said on Tuesday, disappointing investors who had hoped the Zara brand canada goose black friday sale veteran would do more to engineer the clothing retailer $2.3 billion turnaround.

Chief Executive cheap Canada Goose Jose Manuel Martinez Gutirrez said Esprit aimed to bring operating expenditure Canada Goose sale to canadian goose jacket net sales ratio to below 50 percent and reduce inventory levels by just canada goose store over 10 cheap canada goose uk percent, reassuring investors that the steeper than expected net loss for the year that ended in Canada Goose Parka June was unlikely to recur.

Martinez, however, gave few details on how he planned to revive the brand canada goose uk outlet image or boost turnover in fiscal 2013/14.

Esprit shares, which were trading nearly 5 percent higher before the earnings announcement, closed down 7 percent, their biggest daily percentage fall in just under 11 months, in turnover that was the heaviest since mid June. The benchmark Hong Kong index Canada Goose Online closed up 1 percent.

market had too much hope and too high hope on the performance, said Alex Wong, a director at Hong Kong based brokerage Ample Finance Group.

result was not as bad as it looked, he added. Esprit reported its first annual net loss on Tuesday.

Investors had given Martinez a vote of confidence when he was appointed from Canada Goose Outlet Zara owner Inditex last year, driving Esprit stock to notch its biggest one buy canada goose jacket cheap day gain in 14 years.

Esprit has been trying to revive its image since it reported a 98 canada goose uk shop percent drop in profit for the first half of canada goose clearance sale 2011 Canada Goose Coats On Sale and acknowledged canada goose coats on sale the brand had its soul

The company is also struggling with canada goose sluggish demand in austerity hit Europe, which accounts canada goose factory sale for about 80 percent of its revenue, and competition buy canada goose jacket from Gap Inc and Uniqlo, the flagship of Japan Fast Retailing Co Ltd.

Martinez has so far shut down the company North American operations and closed 16 stores, mainly in Europe, while maintaining its focus on China.

He also plans to slash by a third canada goose coats the time it takes for new products Canada Goose online to hit the shelves by simplifying distribution, one of the hallmarks of his tenure at Inditex.

really should focus now on performance itself and we shouldn expect to have any more exceptional provisions, Martinez told the briefing.

So far, investors have appeared to be willing to give Martinez time to carry on with his restructuring plans and analysts said he still had his work cut out for him.

Before Canada Goose Jackets Tuesday fall, Esprit shares were up about 37 percent uk canada goose outlet since his appointment uk canada goose was announced on Aug. 7, 2012, nearly three times canada goose uk black friday the percentage gain in the benchmark Hong Kong index during the same period.

not easy to change into a Zara style retail model from Esprit existing one, which also comprises wholesale, said Ample Finance Group analyst Wong. needs to take quite some time to see the read more here Canada Goose Outlet actual effect.

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