Check out Esprit's 'biggest positive surprise' in its bad 3Q results

Organic sales dropped 8.5%.

According to Nomura, Esprit’s 3Q growth decline was lower than their estimate, although still significantly negative. Performance of the retail channel was better than forecast, led by promotions and the shift of the Easter holiday to late March.

SSSG was negative 1.5% in 3Q compared with negative ~3.6% in 1H. Overall organic sales declined 8.5% (-4.5% excluding North America and stores closures).

Here's more from Nomura:

The biggest positive surprise was organic growth in Retail in Asia Pacific in 3Q; even in Europe for retail, the organic growth decline trend moderated.

However, sales promotions should affect profitability, and wholesale is still significantly negative. Moreover, Esprit issued another profit warning (for the second consecutive interim), as it expects write-downs of ~HKD3bn, led by impairment of goodwill in China (~HKD2bn), 16 additional store closures (~HKD300mn – mostly in Europe), inventory (HKD250mn), and onerous contracts on loss-making stores’ leases (~HKD220mn).