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].
思捷环球(00330) - 2020 - 年度财报