ESPIRIT 2020 年度報告 思捷環球控股有限公司 截至二零二零年十二月三十一日止六個月之報告 香港股份代號 00330 7 and and and and and and the first of the f ESPIRIT 公司資料 | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------- ...

Brand Vision and Strategy - Esprit aims to become one of the most innovative and sustainable lifestyle fashion brands globally[2]. - The company emphasizes a clear strategic focus on timeless, flexible, and high-quality products that remain appealing regardless of seasonal changes[2]. - Esprit's mission includes integrating consumer feedback and market trends into meaningful products and brand experiences[7]. - The company is focused on creating a community that seeks positive change through its product selections[7]. - The company aims to simplify clothing choices while promoting a sense of joy and community among its customers[7]. - The company is focusing on a new brand direction, Esprit 2.0, which emphasizes meaningful connections with customers and sustainable practices[38]. Financial Performance - The company's revenue for the fiscal year decreased by 24% to HKD 9,874 million due to the impact of the global pandemic[26]. - The loss before interest and tax (LBIT) reached HKD (3,447) million, compared to HKD (2,080) million in the previous year[26]. - The company plans to stabilize profitability in the fiscal year 2021, focusing on cost management and cash flow generation[26]. - The company will not recommend a dividend due to the losses incurred throughout the fiscal year[26]. - The company has made significant progress in its operational performance, achieving a nearly break-even loss of HKD (15) million before interest, taxes, depreciation, and amortization[42]. - The gross margin for key European retail and online stores has improved, and the wholesale business has stabilized after eleven consecutive years of decline[42]. - The company has saved a total of HKD 900 million in costs during the fiscal year 2019/2020[57]. - The gross profit margin improved to 43.7%, indicating enhanced profitability[64]. - The group recorded revenue of HKD 9.9 billion for the fiscal year 2019/2020, a decrease of 21% year-on-year from HKD 12.9 billion in the previous fiscal year[175]. - The group’s gross profit margin was 43.7%, a year-on-year decrease of 6.7% due to the impact of the pandemic and inventory surplus[190]. Restructuring and Operational Changes - The company has implemented a restructuring plan to navigate a challenging environment[19]. - A restructuring plan was successfully submitted to the court by the end of June 2020, with full implementation initiated in the new fiscal year[22]. - The company closed nearly 28 unprofitable stores in Germany as part of its restructuring efforts[23]. - The company has shifted its focus to enhancing the Esprit brand image and evaluating a more streamlined product portfolio[23]. - The company has welcomed new executives to strengthen its management team and support strategic plans[28]. - The company has closed unprofitable stores and streamlined operations to reduce major cost items significantly[42]. - The company has initiated self-administration restructuring procedures for six subsidiaries in Germany due to the impact of the COVID-19 pandemic[43]. - The company has appointed a new CFO, Johannes Schmidt-Schultes, to further consolidate the management team and support the restructuring efforts[172]. Sustainability Initiatives - The company aims for its clothing line to be 100% made from sustainable materials by 2023[23]. - The company aims to use 100% sustainable textile fibers by 2023, with 50% of key materials already made from sustainable fibers[39]. - The company aims to achieve 100% sustainable denim by 2023, with 78% of denim currently made from sustainable materials[60]. - The company aims to achieve 100% sustainable materials in its clothing line by 2023, with 80% of cotton sourced from more sustainable sources and 50% of key materials made from sustainable fibers[98]. - The company has committed to using only preferred man-made cellulosic fibers starting in 2023, ensuring that these fibers are sourced from responsibly managed forests and not from endangered or ancient woodlands[112]. - The company has established a permanent controlled fabric library, ensuring that over 70 core fabrics meet the highest quality standards for mass production[117]. - The company has implemented a large detoxification program to eliminate 11 categories of harmful chemicals from its supply chain by 2020[143]. - The company has set a target to transport 90% of its European online store products in an environmentally zero-harm or reduced-emission manner, achieving 80% in the fiscal year 2019/2020[153]. Digital Transformation and E-commerce - Esprit's online store ranks first in its main markets, supported by a strong retail network and loyal wholesale partners[9]. - The company’s online store was ranked first by consumers and won the Deutscher Online Handel Award 2020, highlighting its strong e-commerce channel[41]. - The company is collaborating with Salesforce to enhance its online platform and customer experience in the coming months[41]. - The e-commerce platform has become a significant revenue source, accounting for over 30% of total sales[89]. - The company is enhancing its digital presence and customer experience through a revamped Salesforce e-commerce platform set to launch in Q1 2021[89]. Cost Management and Efficiency - Operating expenses (excluding special items) decreased by 23%, with employee costs down by 37% and lease costs reduced by 81%[57]. - The company has implemented a restructuring plan that has reduced operating expenses (excluding special items) by 23%[86]. - The company has reduced product selection significantly and is focusing on seasonal collections to enhance quality and sustainability[38]. - The company has streamlined its structure to create clear reporting channels and reduce complexity, which has already shown positive effects in financial data[86]. - The company has reduced the use of plastic packaging bags by implementing a new method of folding clothes, which decreases plastic usage by 55-86% for denim products[156]. Social Responsibility and Labor Practices - The company has established a worker code of conduct based on Fair Labor Association standards, with plans to cover over 80% of factory workers after launching a Turkish translation[135]. - The company initiated the ACT program to address low wages in the garment industry, promoting collective bargaining in major garment-exporting countries[137]. - The company is a member of several industry initiatives, including the Fair Labor Association and the Bangladesh Fire and Building Safety Agreement, to improve working conditions[129]. - The company emphasizes ethical production practices and compliance with national and international regulations through its supplier code of conduct[126]. - The company conducts regular audits and collaborates with suppliers to implement corrective action plans when issues arise[130]. Environmental Impact and Compliance - The company aims to reduce greenhouse gas emissions by 30% by 2021, with online business shipping already carbon neutral[61]. - The company has achieved 100% environmental assessments of its main wet processing factories, although only 35% were audited due to pandemic travel restrictions[147]. - The company has achieved 100% transparency in its first and second-tier supplier distribution, with 33% transparency in its third-tier suppliers as of the fiscal year 2019/2020[122]. - The company has shifted more production to Europe, which is expected to reduce delivery times and lower carbon footprints due to decreased transportation needs[123].

Financial Performance - The company's revenue for the first half of the fiscal year 2019/2020 was HKD 5.8 billion, with a distribution network covering over 40 countries[19]. - The company reported a near break-even loss of HKD 15 million before interest, taxes, depreciation, and amortization, indicating improved profitability due to increased productivity and cost reductions[15]. - The group's financial performance for the first half of the fiscal year 2019/2020 was in line with management expectations, showing positive growth despite a challenging market environment[23]. - The adjusted EBITDA loss (excluding interest, tax, depreciation, and amortization) was HKD (15) million, a substantial improvement compared to the previous year's loss of HKD (94) million[23]. - The company reported a notable improvement in business conditions compared to previous months, indicating a more streamlined and efficient operational structure[23]. - The company reported a loss attributable to shareholders of HKD 331 million, significantly improved from a loss of HKD 1,773 million in the previous year[88]. - The group reported a loss before tax of HKD 334 million, compared to a loss of HKD 1,737 million in the previous year, indicating an improvement in financial performance[126]. Revenue Breakdown - Women's apparel accounted for 68% of total revenue, while men's apparel contributed 17%[16]. - Revenue for women's apparel decreased by 14.1% to HKD 3,925 million, accounting for 68.1% of total group revenue[61]. - The company's revenue for the first half of the fiscal year 2019/2020 was HKD 5,763 million, representing a year-on-year decrease of 11.8% in local currency[30]. - In Germany, the largest market, revenue was HKD 3,007 million, accounting for 52.2% of total revenue, with a year-on-year decrease of 9.8% in local currency[34]. - Revenue from Germany wholesale (excluding electronic stores) was HKD 1,060 million, showing a nearly flat performance after eleven consecutive years of decline, with a year-on-year decrease of -0.9%[35]. - Revenue from Asia, primarily from China, Singapore, Malaysia, Taiwan, Hong Kong, Macau, Thailand, and the Philippines, was HKD 414 million, a significant year-on-year decrease of -40.0%[36]. - Revenue from other European regions (excluding electronic stores) was HKD 2,342 million, reflecting a year-on-year decrease of -6.8% in local currency[35]. Cost Management - The cost of operations significantly decreased by HKD 717 million, representing a year-on-year reduction of 20.1%, due to ongoing efforts to reduce workforce and close non-profitable stores[23]. - The company's basic operating expenses decreased significantly, with employee costs down 25.2% and marketing expenses down 16.3%[30]. - The company's operating expenses decreased by HKD 717 million or -20.1%, reflecting cost-cutting measures and a focus on financial control[40]. - Employee costs and rental costs decreased by -25.2% and -17.8% respectively, contributing to significant cost savings[40]. Store Operations - The company operates 389 retail stores, 19 e-stores, and 4,793 wholesale points of sale globally[19]. - The total number of retail stores decreased by 106, resulting in a total of 389 stores, with a net sales area of 188,182 square meters, down 19.5%[66]. - The company opened 527 new stores while closing 998, resulting in a net change of -471 stores[58]. - Total retail store count decreased by 79 stores, representing a decline of 12.7% to 653 stores[72]. Strategic Initiatives - The management team expressed confidence in the company's recovery trajectory following a restructuring of its operations in China[15]. - The company is focused on executing its strategic plan amidst a challenging market environment[15]. - The group is committed to continuing its transformation strategy with a focus on rapid implementation of key initiatives in the second half of the fiscal year[23]. - The company plans to focus on market expansion and new product development to counteract declining sales figures[72]. - Future outlook includes a focus on expanding e-commerce capabilities and enhancing customer engagement strategies[126]. Governance and Leadership - The company has established various committees, including risk management and nomination committees, to ensure effective governance and oversight[167]. - The leadership team has a diverse background in finance and management, contributing to the company's strategic direction and operational efficiency[167]. - The company emphasizes the importance of corporate governance and compliance with regulatory standards in its operations[167]. - The company appointed Dr. Johannes Georg Schmidt-Schultes as Executive Director and Group CFO since October 2019, bringing extensive international financial experience[167]. Sustainability and Corporate Responsibility - Management emphasized the importance of sustainability as a core value of the group, focusing on profitability rather than sales growth[23]. - The company is actively managing foreign exchange risks, particularly related to the Euro, to mitigate potential impacts on profitability[54]. Financial Position - The group reported a net cash position of HKD 2,740 million as of December 31, 2019, down from HKD 3,282 million as of June 30, 2019, with a net cash outflow of (HKD 542 million) during the first half of the fiscal year[44]. - The company has no external borrowings as of December 31, 2019, maintaining a strong financial position[51]. - The total liabilities decreased to HKD 10,000 million from HKD 6,997 million, indicating improved financial stability[91]. Stock Options and Shareholder Information - The total number of stock options granted as of December 31, 2019, is 62,965,000, with 4,400,000 options that have expired[178]. - The company has a total of 8,450,000 unexercised options under the 2009 Share Option Scheme as of December 31, 2019[176]. - The company has not entered into any arrangements that would allow directors or their associates to profit from purchasing shares or debentures of the company or any other corporate body during the review period[174].

Financial Performance - The company reported a significant turnaround in its financial performance, aiming for sustainable growth and profitability after a challenging fiscal year[15]. - The fiscal year has been marked by significant changes, with a focus on achieving long-term profitability goals[15]. - The company's core business recorded a loss before interest and tax of HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[18]. - The underlying loss before interest and tax was HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[48]. - The company experienced a net loss of HKD 2,144 million, compared to a net loss of HKD 2,554 million in the previous year, indicating a slight improvement[83]. - The company does not recommend a final dividend due to the losses incurred during the fiscal year[18]. Strategic Initiatives - A clear strategic plan has been established to reduce losses and streamline operations, focusing on enhancing brand strength and customer experience[15]. - The management team has made initial positive progress in various operational metrics, laying a solid foundation for future business performance improvements[15]. - The company aims to improve its product offerings and customer experience to enhance competitiveness in the market[17]. - The company is focused on creating a more efficient structure and eliminating loss-making stores as part of its strategic plan initiated in November 2018[26]. - The management team has been optimized to support the company's strategy for long-term value creation[22]. - The restructuring plan has begun to show positive effects, with initial progress noted in the company's operational and financial metrics[26]. Cost Management - Cost control measures led to a reduction in regular operating expenses by HKD 1,742 million or -16.6% year-on-year, aiming to achieve a target of HKD 2 billion in savings over two years[18]. - Regular operating expenses were reduced by 16.6% year-on-year, achieving a healthier cost base and on track to save HKD 2 billion over two years compared to FY 2017/18[29]. - The total operating expenses amounted to HKD 7,088 million, down 19.7% from HKD 8,830 million in the previous year[83]. Market Presence and Sales - The company has expanded its footprint globally, operating in over 40 countries since its inception[5]. - Revenue decreased by 12.9% year-on-year in local currency, with a corresponding decrease in total controllable area of 14.3%[29]. - Comparable store sales in Europe showed positive growth of 1.4% year-on-year in Q4, with significant improvement from a decline of 9.9% in the first half of the fiscal year[29]. - The wholesale business accounted for 97.5% of total wholesale revenue (excluding e-stores), with a year-on-year decline narrowing from -16.2% in the first half to -11.1% in the second half of the fiscal year 2018/2019[37]. - The company closed 169 unprofitable stores and reduced non-store staff, leading to a nearly one-third reduction in related expenses[28]. Sustainability Efforts - The company has initiated a campaign to embrace sustainability and core values, including the introduction of eco-friendly products in the past[5]. - The company achieved over 50% usage of sustainable cotton, moving towards a goal of 100% by July 2021[41]. - The company is focused on sustainability, with 38% of cotton sourced being good cotton and 14% being organic and regenerated cotton[54]. - The company replaced down jackets with vegan alternatives and increased the use of recycled polyester from old plastic bottles[138]. - The company plans to publish its sustainability report three months after the annual report release on its website[138]. Governance and Management - The board of directors consists of 3 executive directors and 3 independent non-executive directors, ensuring over one-third independence[174]. - The company emphasizes the importance of risk management and internal control systems, which are monitored by the board[173]. - The company has established five committees under the board, including the audit committee, nomination committee, remuneration committee, risk management committee, and executive committee, to assist in fulfilling its responsibilities[181]. - The company has implemented a structured onboarding process for new directors to familiarize them with its operations and governance[176]. - The company aims to ensure a consistent approach to risk measurement, control, monitoring, and reporting across all levels of the organization[189]. Future Outlook - Revenue is expected to decline by a low double-digit percentage in the fiscal year 2019/2020 due to economic challenges[112]. - The company plans to continue focusing on market expansion and product development to drive future growth despite current challenges[83]. - Future guidance remains cautious, with expectations of continued volatility in revenue streams across different regions[123].

Revenue Performance - Revenue for the six months ended December 31, 2018, was HKD 6,766 million, a decrease of 14.4% year-on-year in local currency[19] - The company's revenue for the first half of the fiscal year 2018/2019 was HKD 6,766 million, representing a year-on-year decrease of 14.4% in local currency and 15.8% in HKD[44] - Total revenue for the six months ended December 31, 2018, was HKD 6,766 million, down 15.8% from HKD 8,039 million in 2017[78] - Revenue from Germany was HKD 3,467 million, making up 51.3% of total revenue, with a decrease of 15.4%[79] - Revenue from the Asia-Pacific region fell by 27.8% to HKD 698 million, representing 10.4% of total revenue[79] - Revenue from China decreased by 32.1% to HKD 264 million, accounting for 3.9% of total revenue[79] - The lifestyle and other segment saw a revenue increase of 24.3% to HKD 1,029 million, representing 15.2% of total revenue[78] Profitability and Losses - The underlying business performance (excluding interest and tax losses, not including special items) recorded a loss of HKD 332 million[19] - Net loss amounted to HKD 1,773 million, including special items of HKD 1,418 million related to store closures and workforce streamlining[19] - The company reported a loss before tax of HKD 1,737 million, compared to a loss of HKD 949 million in the previous year, reflecting a significant increase in losses[42] - The company incurred a loss attributable to shareholders of HKD 1,773 million, compared to a loss of HKD 954 million in the prior year, representing an increase in loss of 86%[102] - The basic and diluted loss per share was HKD 0.94, compared to HKD 0.50 in the previous year, indicating a significant decline in earnings[99] Cost Management and Expenses - Regular operating expenses decreased by 11.9% in local currency, reflecting cost savings from restructuring activities[19] - The one-time restructuring cost is estimated at HKD 1.6 billion, within the guidance range of HKD 1.5 billion to HKD 1.7 billion[37] - The company aims to reduce non-store staff by approximately 35% to 40% as part of its restructuring efforts[37] - Operating expenses are projected to decrease by a mid-to-high single-digit percentage year-on-year in the second half of the fiscal year 2018/2019, driven by cost savings from restructuring measures[73] Store Operations and Closures - Total controllable area was 508,375 square meters, a decrease of 11.0%[19] - The net retail sales area decreased by 12.2% due to the closure of 91 directly managed retail stores in the first half of the fiscal year[37] - The company closed 57 stores in total, with a net change of -159 stores across all types[84] - The total number of stores was 495, with a net sales area of 233,818 square meters, reflecting a 12.2% decrease in net sales area year-on-year[76] Market and Regional Performance - The Asia-Pacific region generated HKD 698 million, accounting for 10.4% of total group revenue, with a local currency growth decline of 26.6%[27] - Germany's revenue was HKD 2,601 million, making up 38.3% of total group revenue, with a local currency growth decline of 11.0%[27] - Comparable store sales in Germany showed a decline of 10.7% for the first half, with a significant improvement from a 16.3% decrease in the first quarter to a 5.9% decrease in the second quarter[51] - The Asia-Pacific region experienced a significant revenue drop of 31.2% year-on-year, primarily due to the exit from the Australian and New Zealand markets[46] Strategic Initiatives and Future Outlook - The company aims to restore sustainable growth and profitability through strategic restructuring initiatives[19] - The company is focusing on improving direct communication channels with customers and has conducted extensive market research to align product offerings with consumer preferences[39] - A new product team has been established to cater specifically to the Asian market, designing products that meet local wearing habits[39] - The company aims to establish a profitable wholesale model by the fall/winter of 2019, focusing on enhancing service to wholesale customers[52] Financial Position and Cash Flow - Net cash reached HKD 3,635 million with no debt[19] - Cash and cash equivalents at the end of the period were HKD 3,222 million, a decrease from HKD 2,829 million at the end of the previous year[108] - The company reported a net cash outflow from operating activities of HKD 836 million, compared to HKD 558 million in the prior year, reflecting increased operational challenges[108] - The company had no external interest-bearing borrowings as of December 31, 2018[69] Inventory and Receivables - Inventory balance decreased to HKD 2,440 million, a year-on-year reduction of 12.7%, with inventory turnover days increasing to 132 days[64] - Net trade receivables were HKD 1,035 million, down 15.5% year-on-year, primarily due to a 15.9% decrease in wholesale revenue[64] Accounting and Regulatory Changes - The company adopted new accounting standards effective from July 1, 2018, which did not result in significant changes to the financial performance[119] - The group continues to apply hedge accounting under IFRS 9, with no significant impact on financial data from the transition[126] - The group recognized return liabilities and rights to recover products as assets under IFRS 15, enhancing the clarity of financial reporting[130]