Fashion retailer Esprit Holdings (0330.HKG) announced that it has appointed a senior executive from Inditex SA (ITX.MCE), parent company of Zara, as its new chief executive, boosting the company’s shares on Tuesday, The Wall Street Journal reported. The announcement that Jose Manuel Martinez Gutierrez will join the company resolves the uncertainty that followed the unexpected departure of Esprit’s chairman and chief executive in June. Shares of the company climbed more than 30% to as high as HK$13.80 (US$1.78) on the news. Martinez, whose appointment will take effect in September, was previously the group director of distribution and operations for Inditex, the world’s largest fashion retailer by sales. Esprit has seen steep declines in profit as a result of the crisis in Europe and stiff competition from other retailers, forcing the company to close operations in Europe and exit the North American market altogether.
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