Esprit Holdings Limited has released its full year financial results for the twelve months, ending in June 2014. After revealing negative numbers in the financial results in 2013, the fashion chain could stabilize their sales performance throughout the full year 2013/14.

Esprit’s turnover amounted to HK$ 24,227 million (€2,35 billion), representing a decline of -6,5%. The gross profit margin improved slightly year-on-year to 50,2% (FY 12/13: 46,6%), mainly due to improved inventory management and a larger share of retail turnover to group turnover.

The operating expenses (OPEX) amounted to HK$ 11,795 million, whereas the OPEX in the full year of 2012/13 ranged around HK$ 17,007 million, representing a significant reduction of HK$ 5,212 million (-30.6%), bringing the OPEX-to-sales ratio to 48.7%.

Esprit’s net cash increased to HL$ 5,771 million, which marks an increase of HK$ 1,120 million in comparison to the full year 2012/13 (HK$ 4,651 million). This net cash number represents the highest level since the end of the full year results of 2008/09, mainly achieved through HK$ 2,006 million cash inflow from operations as well as strict management of working capital and capital expenditure.

As for the new financial year, management priorities will focus on finalizing the implementation of the vertically integrated business model for Esprit’s retail and wholesale, overhauling the group’s new operations. Those include the new retail store concept and the integration of Esprit’s e-commerce platform with all other channels and consumer touch points to enable customers to better interact with the Esprit brand.