Esprit forecasts first-half loss

Hong Kong clothing retailer Espirt Holdings (0330.HKG) said it may report a loss in the six months ending December 31 as it fights to revive its brand after posting lower-than-expected earnings for five years in a row, Bloomberg reported. The predicted loss is “mainly attributable to worse-than-expected operating results” in the quarter ended September 30, the company said in a statement released to the Hong Kong Stock Exchange yesterday, without elaborating. Esprit, which raised funds last month from a rights offer, said it will continue with measures to revive the brand, improve product quality and update its distribution network and supply channels. The brand’s sales have slumped amid stiff competition from rivals such as Inditex’s (ITX.MCE) Zara. The company’s shares fell 1.4% to HK$11.68 at the end of trading in Hong Kong yesterday.